Hua Ran, Chairman of the Dalian Commodity Exchange: Palm oil takes the lead in realizing futures options in the exchange, otc market，domestic and international market.
Hua Ran, Chairman of the Dalian Commodity Exchange, said in a speech at the ceremony of the palm oil options listing and the introduction of foreign traders to participate in the transaction on June 18, the history of deep cultivation and expansion of the palm oil derivatives system is a microcosm of DCE's solid advancement of international derivatives exchanges based on futures and spot, on and off the exchange, domestic and international: from the listing of palm oil futures in 2007 to the currently, 70% of domestic market of the palm oil spot trade uses DCE futures prices as the pricing benchmark, and leading domestic and foreign grain and oil companies extensively use the futures market for risk management; from the pilot palm oil over-the-counter options in 2017 to the launch of palm oil commodity swaps in 2018, This year, the introduction of palm oil basis trading on the OTC platform, and the official listing of palm oil options today; from the introduction of foreign traders to participate in palm oil futures in December last year, to the opening of palm oil options today, DCE took the lead in palm oil, fully imported commodity, realizes full coverage of futures and options, on- and off-exchange, domestic and international.
"One step at a time, DCE has initially formed a derivative instrument system integrating futures and spot products, on- and off-exchange collaboration, and domestic and overseas connections on palm oil, which can better serve the palm oil industry to integrate into the domestic big cycle. It is a new development pattern where the main body and the international and domestic double cycles promote each other." Hua Ran said.
Hua Ran also said that DCE will take serving the real economy as the starting point and goal, and resolutely implement the deployment requirements of the Party Central Committee and the State Council on maintaining the supply and price of bulk commodities and maintaining the stable operation of the economy. Under the strong leadership of the China Securities Regulatory Commission, DCE will effectively play the role of front-line supervision of futures exchanges to ensure that the futures market objectively and rationally reflects the relationship between supply and demand, operates safely and smoothly, and plays a greater role in serving the high-quality development of the national economy.