To lay a solid foundation for the launch of agri-product options, the collaborative test on mock trading has started
After the introduction of stock ETF options, the preparatory work for the launch of agri-product options is accelerating. Today (March 23), to test the design of the options market maker rules and the readiness of the related exchange systems, software supplier sytems and market maker systems, to promote and examine the preparation of related business and identify good market makers to build a sound basis for the option’s listing and operation, Dalian Commodity Exchange (DCE) launched the collaborative test on mock trading of soymeal option by market makers (the collaborative test for short). The launch signified the exchange’s preparation work for the agri-product option has entered the stage of identifying and cultivating market makers.
The collaborative test will be carried out from March 23 to April 30, with a total of 28 trading days. The product to be tested is soymeal option, and each market maker’s transaction code will be given RMB 100 million as starting capital. The limited position of market makers before the delivery month is set as 2.5 times that of clients at the moment. The test rules will be implemented according to the exchange’s related draft bills on options and market makers.
Since the exchange’s issuing of the “DCE’s Call for Entries for the Collaborative Test on Mock Trading of Option Market Makers” in December 2014, the market institutions and DCE members have been showing strong interest and supports. After the evaluation and screening of the relevant institution’s staff, system and capital, a total of 40 institutions were selected as market makers for this test.