On November 8, China Securities Regulatory Commission announced that in order to deepen the reform of capital market and stimulate market vitality, with the approval of the State Council, China Securities Regulatory Commission officially launched the pilot work of expanding stock index options, and will approve CSI 300ETF options listed on Shanghai Stock Exchange and Shenzhen Stock Exchange and CSI 300 index options listed on China financial Futures exchange in accordance with the procedures.

Stock index option is a basic risk management tool to manage stock spot investment. On February 9, 2015, SSE 50ETF options were listed on the Shanghai Stock Exchange. Over the past four years, the market has been running smoothly and orderly, and the product functions have been gradually brought into play, laying the foundation for expanding the pilot projects in terms of market cultivation, talent cultivation and experience accumulation. The expansion of the pilot stock index options is conducive to improving the multi-level capital market system, improving market functions, attracting medium and long-term capital to the market, and enhancing the internal stability of the market.

CSI 300 index is the core broad-based index of China's A-share market. The stock market value of the index component is about 30 trillion yuan, accounting for about 60% of the total A-share market value. The asset scale of CSI 300 index is more than 150 billion yuan, with strong market representation, wide coverage and great influence. CSI 300 index futures have been running smoothly for more than nine years.

On the same day, CFFEX said it plans to launch CSI 300 stock index options trading in the near future.Stock index option is an important tool to manage the risk of capital market. Listing stock index option is helpful to improve the risk management system of capital market, attract long-term capital into the market, and promote the deepening reform of capital market and the healthy and stable development of capital market. According to the introduction, since the stock index option simulation transaction was launched in 2013, CFFEX has always adhered to the principle of "high standard, stable start and risk control", and steadily and orderly promoted the preparation for the listing of stock index options. At present, the relevant contract rules design, technical system construction, member services, investor education and other preparatory work have been solidly carried out.

The Shanghai Stock Exchange and Shenzhen Stock Exchange also said on the same day that they would make solid preparations under the guidance of the CSRC to ensure the smooth launch of CSI 300ETF option contracts and smooth operation.

It is understood that the options underlying of CSI 300ETF option contract listed on Shanghai Stock Exchange is Huatai-Pinebridge CSI 300ETF (Code: 510300), and the options underlying of CSI 300ETF option contract listed on Shenzhen stock exchange is Harvest CSI 300ETF (Code: 159919), which is the largest CSI 300ETF in Shanghai and Shenzhen stock markets respectively. Among them, the total scale of Huatai-Pinebridge CSI 300ETF is 34.5 billion yuan, and that of Harvest CSI 300ETF is 22.6 billion yuan.

11On October 10, CFFEX solicited opinions from the public on CSI 300 stock index option contracts and relevant rules. According to the draft, the target of CSI 300 stock index option contract is CSI 300 index, the contract multiplier is RMB 100 per point, the minimum change price is 0.2 points, the maximum daily price fluctuation is limited to ± 10% of the closing price of CSI 300 index on the previous trading day, the contract month is the current month, the next two months and the following three quarters, the exercise method is European, and the delivery method is cash delivery.

According to the reporter of futures daily, private institutions have made preparations for the expansion of stock index options. Zhou Jun of Shenzhen Qianhai Shengshi magpie Asset Management Co., Ltd. said that the current introduction of CSI 300 stock index options and ETF options is the need of accelerating the opening up of China's capital market, and the market has made enough preparations to meet the new stock index options tools.

"Looking forward to the introduction of new stock index options. The scope of CSI 300 index is much larger than SSE50 index. More institutions and investors will participate in CSI 300 index options and ETF options after listing. "Zhang Jieping, chairman of Muxin assets, told reporters, "in the future, we will copy the strategy of SSE 50ETF option on CSI 300 stock index options and ETF options to increase the dispersion of the strategy. At the same time, we will develop some arbitrage strategies of 50ETF and 300ETF options. We believe that the capacity and stability of the strategy will be greatly improved."

Another industry person said that the expansion of stock index options will bring benefits to the capital market including a shares. The introduction of CSI 300 stock index options and ETF options will attract more market participants, further improve the activity of the stock market, and at the same time promote the linkage of the futures market, which will help guide the medium and long-term capital into the market. In addition, the continuous enrichment of options will promote the growth of related businesses of financial institutions including futures companies, especially for futures companies, which will help them to participate more in the securities market and improve the competitiveness of differentiated services.