Recently, Dalian Commodity Exchange (DCE) has received approval from China Securities Regulatory Commission (CSRC) to launch soybean meal options on March 31.
DCE will list the options contracts on March 31 morning, and their trading hours will be the same as the soybean meal futures.
The first batch of contract months to be listed for soybean meal options is July, August, September, November, December 2017 and January, March 2018.
As for the options contracts’ initial listing price, it will be calculated based on the BAW options pricing model for American-style options. The initial listing price will be made available on DCE’s official website.
With regard to the order types, during the early stage of listing, DCE will only allow limit orders and stop-limit orders for the options contract, and the maximum size of each order is 100 contracts.
Regarding the exercise of options, clients can submit application for exercise of options during the trading hours on any trading day. DCE will work on making improvements to the relevant business arrangements to add further convenience for clients.
As part of the preparation, the after-hours trading of all DCE futures products will be suspended on the evening of March 30. In addition, in accordance with DCE’s market holiday arrangements, there will be no after-hours trading on the evening of March 31, and the after-hours trading of the soybean meal options will resume on the evening of April 5, along with all the DCE futures contracts with after-hours trading sessions.