In the first 10 months of this year, the cumulative trading volume of SSE50 ETF options reached 500 million, far more than 316 million in the whole year last year. At the same time, the institutional investors account for more than 60% of the 50 ETF options market in Shanghai Stock Exchange. With the steady expansion of the options market, more and more investors use options for insurance and income enhancement, and the economic functions of options gradually play.
"The practice of the domestic option market also confirms the important role of stock options in improving market efficiency. In the past five years since the SSE50 ETF option went online, it has become a powerful tool for investors to manage the fluctuation of the spot market, and has a positive impact on the liquidity and scale of the underlying securities 50ETF."Some insiders said that due to the high weight of the financial industry in 50ETF and the limited coverage of the stock market, it could not fully meet the diversified risk management needs of investors.
Shanghai 50ETF option is only aimed at SSE50 index, only 50 stocks, which is not enough to represent A-share market, cannot fully meet the diversified risk management needs of investors, and its function is limited.
Although CSI300 ETF and SSE50 ETF are large blue chip ETFs, their positions are still quite different, and their risk return characteristics are also different. The positions of CSI300 ETF cover 300 large stocks and 28 first-class industries in Shanghai and Shenzhen stock markets, which is a representative large blue chip ETF in China. The positions of SSE50 ETF are 50 blue chip stocks in Shanghai stock market, among which the financial industry accounts for a relatively high proportion.
Previously, due to the lack of option products, some investors used SSE50 ETF options to manage the risk of CSI300 ETF, which could not fully cover the risk, and the effect was generally unsatisfactory.
The timely launch of Shanghai and Shenzhen 300ETF options can cover more A-share targets, play a synergistic effect with Shanghai Stock Exchange 50ETF options, and build a risk management system, which is of positive significance for reducing the overall volatility of A-share and promoting the sustainable and stable development of the stock market.
At present, there are 10 ETF products tracking the CSI 300 index in Shanghai and Shenzhen stock markets, with a total turnover of 418.6 billion yuan in the first three quarters of 2019.Among them, Huatai Bairui Hushen 300ETF listed on Shanghai Stock Exchange has the largest scale, with a total scale of 34.5 billion yuan. In the first three quarters of 2019, it accounted for 61% of the turnover of similar products; Harvest CSI300 ETF has the largest scale in Shenzhen Stock Exchange, with a total scale of 22.6 billion yuan, with a 12% of the turnover of similar products in the same period.
In the view of the above insiders, as the sample stocks covered by the CSI300 ETF itself have multiplied compared with the SSE50 ETF, after the introduction of the CSI300 ETF options, it will work with the existing options and futures products to improve the coverage of the derivatives market to the spot market, and more spot investment will be precisely protected by the options.
In terms of trading mechanism, at present, Shanghai Stock Exchange has launched a number of trading mechanisms, such as the combination strategy of stock options, margin business and consolidated declaration of exercise orders. After the future listing of CSI300 ETF options, the market also hopes that the trading mechanism of stock options will be further optimized in terms of the outlook of the options market itself.
According to Xiao Zhangyu, it can be further optimized in terms of increasing the number of exercise prices, providing more price options, optimizing the maximum number of single orders, and launching the securities offset margin system.
"If the securities offset margin system can be introduced in the ETF option market in the future, then the seller can make better use of the funds. In addition, there are some trading mechanisms that can be further optimized, such as increasing the expiration month of contracts, increasing the distance between exercise prices, etc., which are also very worthy of expectation. "Zheng Zhenlong also called.
In addition, Zhao Lin believes that the circuit breaker mechanism can be optimized to a certain extent, because the price of the option contract is relatively low when it is about to expire, which is easy to trigger the circuit breaker, thus causing a certain liquidity impact. He hopes that the exchange can consider to appropriately liberalize the circuit breaker standard of the fast maturing option in recent months, so as to help the market manage the maturity risk.
Looking forward to the future market development space of Shanghai and Shenzhen 300ETF options, Xiao Zhangyu believes that there is a huge space, the domestic capital market has a strong demand for derivatives, and it is very necessary to use appropriate hedging tools. CSI300 ETF includes more stocks, which can better meet the needs of market investors for risk management, and give full play to the market function of options as a derivative.
Zhao Lin also said that after the launch of CSI300 ETF options, on the one hand, it will attract more domestic and foreign investors, especially institutional investors to invest. On the other hand, it will help train talents and better cooperate with the strategy of "one belt and one way" to enhance the international competitiveness of China’s capital market.