On May 26th, Jiang Yan, chairman of the Shanghai Futures Exchange (the “Shanghai Futures Exchange”), stated that crude oil options will be listed as China’s international options.
Jiang Yan made the above statement in his speech at the 18th Shanghai Derivatives Market hosted by the previous period.
Jiang Yan pointed out that crude oil futures not only withstood the test of extreme events such as negative oil prices, but also showed a relatively independent market. At the same time, it realized the import of crude oil and the re-export of crude oil to South Korea, Singapore, Myanmar and other countries; Gum 20 and low-sulfur fuel Oil futures have begun to be used as a pricing benchmark in international trade. Copper varieties innovatively used the "dual contract" open model and listed international copper futures, whose prices have gradually been recognized by the copper industry in the Asia-Pacific region.
In Jiang Yan's view, although the operation quality of China's futures market is continuously improving, compared with the highest international standards and best levels, there is still a lot of room for improvement in market development. It is urgent to promote the "four systems" from "building up" to "strengthening." "That is to change the original relatively single, shallow market system structure, establish a three-dimensional, multi-level market with on-site and off-site docking, domestic and overseas interaction, and greatly improved efficiency, and empower the entire industry chain and supply chain; expand varieties Sequence coverage, create rich and high-quality products, form a powerful risk management and wealth management "tool pool", and accurately serve the national economy; further enhance the market risk management function, cultivate leading factor allocation institutions, and form an industrial chain and supply chain , various types of institutional investors on the asset management side are deeply involved in the good ecology of the market; to solve the institutional obstacles, build a more mature infrastructure and institutional system, and consolidate the "four beams and eight pillars" of high-quality development.
Jiang Yan further pointed out that the Shanghai Futures Exchange will follow the "Four Becomes" as the guide to complete the "Four Major Transformations."
The first is to strive to become a pioneer in building a strong domestic market, and to realize the transformation of the main line of business from on-site driving to an integrated two-wheel drive. On the one hand, it will closely connect with the entire industry chain, based on satisfying its full life cycle, personalized and differentiated hedging needs, create a high-quality product system that is integrated in the future, and accelerate alumina, ferrochrome, synthetic rubber, and refined oil. , Natural gas, naphtha, corrugated paper, double offset paper, electric power and other products listed, and using the standard warehouse receipt trading platform as a starting point, actively develop over-the-counter businesses such as commodity swaps, and deepen cooperation with Zhejiang Free Trade Zone and Baowu Group, etc. Strategic cooperation between related parties, exploring the construction of a warehouse receipt registration center, promoting the joint development of futures and spots, and assisting the construction of a unified domestic market. On the other hand, it will closely focus on the structural issues of the integrated futures market, gather efforts to link the institutional system, strengthen the backbone of market thickness and depth, strengthen publicity, strengthen investment and education, and attract entity companies and financial institutions to make full use of the market to optimize resource allocation, effectively hedge risks, promote the cultivation of commodity trading service providers, support futures companies and their risk management companies, and other institutions to improve their comprehensive service capabilities, provide low-cost risk management services for customers in all links of the national economy, and help the entire industry chain to improve stability and competition force.
The second is to strive to become the vanguard of a higher level of openness and realize the transformation of the market layout from domestically based to domestic and foreign linkages. On the one hand, we will always base ourselves on the needs of the domestic market and develop more open-to-market products such as listed shipping index futures to help entity companies better coordinate the two markets and two resources; on the other hand, we will unswervingly expand opening up and accelerate integrate rules and systems at home and abroad, carry out in-depth overseas settlement business, explore the establishment of international copper futures warehouses, strengthen cooperation and connectivity with overseas markets, actively introduce QFII and RQFII to participate in transactions, and build a gravitational field for global investors to actively participate in, to make China become the world's market, a shared market.
The third is to strive to become a practical example of innovation-driven development and realize the transformation of science and technology strategy from supporting development to active empowerment. Focus on “data makes supervision smarter”, do a good job in the construction of a new generation of transaction, settlement, and inspection systems, actively explore the application of cloud computing, big data, artificial intelligence, the Internet of things and blockchain technology in business scenarios, and improve technology supervision and management. The level of information integration provides the market with more high-quality technical services.
The fourth is to strive to become a pioneer in the modernization of the financial infrastructure governance system and governance capabilities, and realize the transformation of the management model from traditional operation to modern governance + management. The futures market is a place that provides continuous, open, and authoritative prices. A governance system that keeps pace with the times and suits market practices is the basis for the market to effectively perform its function of price discovery.
Jiang Yan said that the Shanghai Futures Exchange will always adhere to the principle of “system building, non-intervention, and zero tolerance”, adhere to bottom-line thinking, closely follow market changes, vigorously investigate abnormal transactions and malicious speculation, and take timely targeted measures to do a good job in futures and cash linkages. Supervision, curb unreasonable price fluctuations, improve the effectiveness of front-line market supervision and governance, take "zero tolerance" practitioners as its own responsibility, and resolutely fight the tough and protracted battle to prevent and resolve major financial risks.