CSRC Green Lights Trading in Six New Commodity Options Contracts

Source: Regulation Asia Editors, Regulation Asia 2020-06-15

The ZCE will launch trading steam coal options; the DCE will launch polypropylene, PVC and LLDPE options; and the SHFE will launch aluminum and zinc options.

The CSRC (China Securities Regulatory Commission) has granted approval for the launch of six new commodity options contracts – aluminum, zinc, thermal coal, polypropylene, polyvinyl chloride (PVC) and linear low-density polyethylene (LLDPE).

The ZCE (Zhengzhou Commodity Exchange) will launch trading steam coal options on 30 June.
The DCE (Dalian Commodity Exchange) will launch trading in polypropylene, PVC and LLDPE options on 6 July.
The SHFE (Shanghai Futures Exchange ) will launch trading in aluminum and zinc options on 10 August.

Aluminum, zinc, thermal coal, polypropylene, PVC and LLDPE are all important bulk commodities, the CSRC said in a statement.

“Since the listing of relevant futures contracts, the market has generally operated smoothly, industrial customers have participated extensively, and their functions have been more prominent.”

The listings of the new options contracts will further help to meet the risk management needs of companies, it added.

In April, the CSRC also granted the DCE approval to launch hog futures. In March, the DCE launched trading in LPG (liquefied petroleum gas) futures and options.

Late last year, the CSRC also granted approval for trading in PTA, methanol and rapeseed meal options on the ZCE; iron ore options on the SHFE, and gold options on the DCE – all of which have since started trading.

CSRC Green Lights Trading in Six New Commodity Options Contracts

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