ZCE will accelerate the launch of PTA options & PX and PSF futures, creating better development environment for investors – ChinaTexnet.com
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ZCE will accelerate the launch of PTA options & PX and PSF futures, creating better development environment for investors

2019-12-06 09:19:52 CCFGroup

The 15th China (Shenzhen) International Derivatives Forum under the theme of “Deepen Reform for Further Development. Serve the Real-economy As Original Aspiration” was held in Shenzhen from Nov 30 to Dec 1. On Dec 1, Zhengzhou Commodity Exchange (hereinafter referred to as “ZCE”) host “The 4th Futures Investment Institution Session” at Zhengzhou Commodity Exchange Event, attracting massive investing institutions and customers.

Currently, the corporate client position proportion of major futures at Zhengzhou Commodity Exchange exceeded 50%, and that of futures like cotton and PTA was above 60%. The position structure of many descriptions has been close to the level on international advanced futures market.

Since the beginning of this year, ZCE has revised and completed the contract rules for many futures varieties such as cotton yarn, and optimized the layout of transaction warehouses and premiums and discounts of varieties such as PTA and cotton. In October, the ZCE also adjusted the position limits of some futures and options. In the functional evaluation of futures products organized by the CSRC in the first half of 2019, ZCE's PTA futures ranked first among chemical products.

At present, ZCE has taken substantial steps to open to the world. The introduction of PTA futures to foreign traders has been implemented smoothly, which is the first step in building an international pricing center.

It is worth noting that in the near future, ZCE will also list 4 new varieties such as PTA options and soda ash futures. In order to ensure the smooth listing of new instruments and new tools such as PTA options, the Zhengzhou Commodity Exchange organized members to launch two whole market test on November 23 and November 30 on PTA options and new futures varieties, and the main test items included futures and options trading, settlement, risk control, hedging and the exercise of options etc. The overall test process was stable and smooth.

This test was the first unified whole-market test of futures and options of ZCE. According to statistics, 149 members participated in the test, and a total of 296 seats participated in the test. Among them, a total of 137,000 PTA option contracts were traded, with a volume of 418,000, and a position of 139,000.

To boost stable and robust development of futures market and create a better development environment for investors, Wang Xiaoming, the Vice General Manager of ZCE, expressed that ZCE will make efforts to do well in the following 4 aspects:

1. To promote product and business innovation and improve product supply. The ZCE will accelerate the listing of new futures varieties such as PX and polyester staple fiber, make solid preparation such as price indices, launch more OTC new businesses, and continuously enrich service means and service methods.

2. To improve the rules and regulations and to refine the listed varieties. ZCE will expand the position limit and position standard on more varieties, reduce the transaction cost of investors and increase the intensity of "insurance + futures" under the premise of controllable risks.

3. To optimize the technical system and improve service quality and efficiency. ZCE formulated an information system development plan this year, promoted the comprehensive upgrade of the existing system, further improved the next-generation settlement platform, continued to optimize the member service system, and improved business processing functions such as delivery and warehouse receipts.

4. To increase market cultivation and create a good investment environment for institutional investors. The ZCE will continue to increase various market cultivation activities, spot market research, and commodity business training courses, encourage institutional investors to understand and participate in the futures market, promote the integration of production and investment, and deepen the integration of industry and finance; Continuously expand the "insurance + futures" pilots, and support futures companies to cooperate with banks, insurance companies and other institutions to jointly improve the level of service to the real economy.

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