DCE: Promoting the internationalization of iron ore options
On October 22, the reporter learned at the 2020 China Coal and Coke Industry Conference that since the beginning of this year, affected by complex factors such as the COVID-19, the price of commodities such as coal has fluctuated sharply, and the production and operation pressure of upstream and downstream enterprises in the steel industry chain has continued to increase. The demand for risk management by using the derivatives continues to increase. In this context, DCE continues to optimize the rules and regulations of futures contracts to provide support for comprehensively promoting the high-quality development in the steel and coal industries.
Yufei Wang, the general manager of DCE, stated in the above-mentioned meeting that in terms of contract rules and regulations, DCE has adjusted the quality standards for coal delivery in a timely manner since 2018 in accordance with changes in the spot market. The new standards have been implemented since 1907 coking coal contract. At present, four physical deliveries have been completed, and the quality of delivered products has been significantly improved. In order to effectively alleviate delivery pressure and ensure smooth delivery, DCE has implemented a rolling delivery system for the first time, started from the 2009 contract of coke varieties, and is currently actively studying and demonstrating the adjustment of coke futures quality standards.
According to the report, the continuous optimization of the contract rules system has led to a steady improvement in the efficiency of market operations. In the first September of this year, the average basis of coal and coke main contracts further converged to 55 and 144 yuan/ton, and the price discovery function was further exerted. The trading and holding volume of coking coal that the institutional customers have, accounted for 42% and 55%, respectively, and the trading volume and holdings of coking coke that the institutional customers have, accounted for 34% and 44%, respectively, a significant increase from the previous year. In addition, after the market makers enter the market, the transaction volume of non-major coking coal and coke contracts has increased rapidly. The transaction volume in September this year accounted for 32%, which was a substantial increase from last year, and the continuity of contracts was significantly improved.
It is understood that since the beginning of this year, in order to reduce the impact of the Covid-19 on upstream and downstream enterprises in the steel industry chain, DCE has taken the initiative to lower the standards for daily handling fees for coking coal and coke, reduce iron ore outbound and storage costs, and introduced a differentiated margin policy, waive the delivery fee and the standard warehouse receipts are used to offset the margin occupation, and reduce the hedging transactions fees for industrial enterprises by 90%.
At the same time, DCE has actively promoted the development of over-the-counter business, and since the end of 2018, it has successively launched commodity swap, basis trading and standard warehouse receipt trading services. The commodity swap business includes coking coal, coke, and iron ore. As of the end of September this year, a total of 73 coal and coking ore swap transactions have been carried out, with a cumulative nominal principal amount of 688 million yuan. The business model covers single commodity swaps, index swap and the spread swap.
In addition, DCE is exploring innovative market services, targeting the steel and coal industries, and actively implement the "DCE Corporate Risk Management Plan", industry associations, information institutions, and industry finance bases to strengthen the cultivation in the leading industrial enterprises. Since 2019, in terms of coal and coking ore varieties, a total of 20 companies have carried out DCE’s over-the-counter options and basis trading projects, and are providing the customers with new a trading pricing method based on "futures prices + basis" as well as providing a customized risk management tools.
Yufei Wang pointed out that in the next step, under the guidance of the China Securities Regulatory Commission, DCE will pay more attention to the improvement of market operation quality and market function, in order to better serve the industrial enterprises, to strengthen the risk management, and to continue to enhance the ability to serve the steel industry chain.
Specifically, DCE will continue to improve the variety and tool system. It will steadily promote the listing of scrap steel futures and the internationalization of iron ore options, and provide industrial customers with more varieties and more comprehensive hedging products and tools. "One product, one policy" promotes the function, and the implementation of the adjustment of coke quality standards; it accelerates the study of iron ore average price contracts; by reducing the position restrictions, lowering the margin standard for transactions near the delivery month, and improving the warehouse receipt service and market maker system. DCE will continue to improve the continuity of relevant futures contracts, increase the number of delivery factories and warehouses as well as the domestic mine delivery brands, DCE will also actively study brand premium and discount adjustments, and facilitate industrial enterprises to participate in the market.
At the same time, we will increase the efforts to build the OTC market in order to serve the diverse and individual needs of industrial enterprises. Focusing on the goal of building the OTC market as a "commodity ecosystem, price information center and trading center", DCE will continue to promote in-depth exchange transactions including coal and coke varieties, explore the construction of coal and coke and other types of sector in OTC market, and the circle members will be involved. DCE will speed up the online registration and transaction of non-standard warehouse receipts for iron ore and other varieties in order to provide liquidity for warehouse receipts and spot transactions, and promote the formation of a product chain and a fair price system that integrates coal and coking ore varieties, futures and stocks, and better serve the related companies with more targeted spot and derivatives business services
The coal coke and coal futures market has gone through nine and a half years in China. Hong Zhang, General secretary of the China Coal Industry Association, stated at the above meeting that though the stage of beginning and exploration, now we have entered a stage of steady development. New ideas, new business formations, and new models continue to emerge, and the function and role of the coal futures market has gradually been effective. He said that it is necessary to study the establishment of an information exchange mechanism between the spot market and the futures market, a price interaction mechanism, as well as price stabilization mechanism to prevent abnormal price fluctuations caused by malicious speculation, after that, we can make guarantees to build a healthy development of the coal futures and options market.


大商所：推进铁矿石期权国际化
10月22日，记者在2020中国煤焦产业大会上了解到，今年以来，受境内外新冠肺炎疫情等复杂因素影响，煤炭等大宗商品价格波动加剧，钢铁产业链上下游企业生产经营压力不断加大，利用衍生品市场开展风险管理的需求持续增加。在此背景下，大商所持续优化期货合约规则制度，为全面推动钢铁、煤炭行业高质量发展提供支持。
大商所副总经理王玉飞在上述会议致辞中表示，在合约规则制度上，2018年以来，大商所根据现货市场变化，及时对焦煤交割质量标准进行调整，新标准自焦煤1907合约开始实施，目前已完成四次实物交割，交割品品质明显提升。为有效缓解交割压力，确保交割平稳顺畅，大商所从煤焦品种2009合约首次实施滚动交割制度，目前正在积极研究论证焦炭期货质量标准的调整工作。
据介绍，合约规则制度的持续优化，带动了市场运行效率的稳步提升。今年前9月，焦煤、焦炭主力合约平均基差进一步收敛至55、144元/吨，价格发现功能进一步发挥。焦煤法人客户成交量和持仓量占比分别达到42%和55%、焦炭法人客户成交量和持仓量占比分别达到34%和44%，较上一年度均有明显增加。此外，引入做市商后，焦煤、焦炭非主力合约成交量从“无成交状态”迅速增长，今年9月的成交占比达32%，较去年大幅提高，合约连续性显著改善。
据了解，今年以来，为降低疫情对钢铁产业链上下游企业的影响，大商所主动下调焦煤、焦炭日内手续费标准，降低铁矿石出库及仓储费用，推出差异化保证金政策，免收交割手续费及标准仓单充抵保证金手续费，对产业企业套保交易手续费减收90%
同时，大商所积极推动开展场外业务，2018年底以来相继推出商品互换、基差交易及标准仓单交易业务。其中商品互换业务包括了焦煤、焦炭、铁矿石品种，截至今年9月底，共开展73笔煤焦矿品种的互换交易，累计名义本金额6.88亿元，业务模式涵盖了单商品互换、指数互换以及价差互换
此外，大商所探索创新市场服务，面向钢铁、煤炭行业，积极发挥“大商所企业风险管理计划”、行业协会和信息机构、产融基地的作用，强化龙头产业企业培育。2019年以来，在煤焦矿品种上，共有20家企业开展了大商所的场外期权和基差贸易项目，在为煤炭产业客户提供基于“期货价格+基差”的新贸易定价方式和个性化风险管理工具方面进行了有益尝试。
王玉飞指出，下一步，大商所将在证监会的指导下，更加注重市场运行质量和功能提升、更加注重为产业企业服务和风险管理，持续增强服务钢铁产业链的能力。
具体来看，大商所将持续完善品种工具体系。稳步推进废钢期货上市和铁矿石期权国际化，为产业客户提供更加丰富、更为全面的避险产品和工具。“一品一策”促进功能发挥，抓紧推进焦炭质量标准调整落地实施；加快研究铁矿石均价合约；通过采取放宽持仓限制、降低临近交割月交易保证金标准、完善仓单服务和做市商制度等举措，持续改善相关期货合约连续性；增加交割厂库数量和国产矿交割品牌，积极研究品牌升贴水调整，便利产业企业参与市场。
同时，加大场外市场建设力度，服务产业企业多样化、个性化需求。围绕打造场外“大宗商品生态圈，价格信息中心和交易中心”的建设目标，持续深入推广包括煤焦矿品种在内的互换交易，探索在场外建设煤焦等品种板块圈，引入圈子会员，加快上线铁矿石等品种非标仓单登记、交易业务，为仓单现货交易提供流动性，推动形成煤焦矿品种期现货融合的产品链条和公允的价格体系，更好地为相关企业提供更有针对性的现货及衍生品业务服务.
我国煤焦、煤炭期货市场已经走过了9年半的历程。中国煤炭工业协会副秘书长张宏在上述会议上表示，从起步、探索，开始进入了平稳发展阶段，新理念、新业态、新模式不断涌现，煤炭期货市场的功能和作用逐渐得到了有效的发挥。他表示，要研究建立现货市场与期货市场的信息交流机制，价格互动机制，以及防范恶意炒作产生的价格异常波动预警与价格平抑机制，为煤炭期货期权市场健康发展提供制度保障。