Published On: Fri, Sep 10th, 2010

China’s Commodity Options Market Has Great Potential

By Yao Yibin (Futures Daily) – “China currently has a mature commodity futures market, but we hope that China can speed development of an options market. We believe that this would be highly conducive to the development of China’s exchange-traded derivatives market. China’s commodity options market has the potential to become one of the world’s most developed markets.” These remarks were made by NYSE Liffe’s Head of Greater China Business Development Cecilia Zhong during an interview with Futures Daily journalists.

he 2010 International Corn Industry Conference will be held on September 15th in Dalian, and as a cooperating partner to this year’s conference, NYSE Liffe – NYSE Euronext Group’s global derivatives business – will be attending.

The Dalian Commodity Exchange (DCE) and NYSE Euronext signed a Memorandum of Understanding on November 4, 2008. Ms. Zhong said that since the signing of the Memorandum, the two exchanges have established close communication and cooperation. Through staff visits to each exchange, market expansion and promotion, information sharing and product research, the exchanges have been able to strengthen cooperation, and this year’s Corn Industry Conference is just one example of this cooperation.

She also said that the overall level of activity in China’s agricultural futures market has attracted worldwide attention, and the DCE’s trading volume is among the highest in the world. However, compared to the more mature futures markets in Europe and North America, China’s futures market product structure is relatively simple, institutional participation is relatively small, and the functions of the futures market have not yet been fully utilized. Ms. Zhong was quoted saying: “at NYSE Euronext all of our agricultural futures have related options; we have a wealth of experience in option products R&D, service development and market research. We are very willing to work together with the DCE to help develop China’s options market.”

NYSE Liffe is the global derivatives business of the NYSE Euronext group that runs futures and options markets in Amsterdam, Brussels, Lisbon, London and Paris. NYSE Liffe offers over 1,000 different derivative products throughout its various markets.

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