Along with the continuous progress of the interest rate market-oriented reforms, the interest rate derivatives market also ushers in new development opportunities. On March 23, the inter-bank market officially launched interest rate option business. On the first launching day, there were 111 financial institutions and products became the first batch of participants including commercial bank, securities and private equity. And a total of 154 interest rate option transactions were completed with a total amount of 12.78 billion yuan. 35 financial institutions completed the quotation transaction.
It is understood that the interest rate option products launched this time are linked to 1-year and 5-year LPR interest rates, including interest rate swap options and interest rate cap and floor options. Insiders pointed out that interest rate option products are a powerful supplement to the existing interest rate derivative series. The introduction of the LPR interest rate options business during the LPR reform process will help financial institutions effectively manage interest rate risk, promote the process of interest rate marketization as well as better serve entities economic.
Help hedge and manage interest rate risk
The so-called interest rate options is an option product linked to interest rate changes. It is an effective tool for managing interest rate risk. Because interest rate options are flexible and non-linear, market participants can obtain the right to protect interest rates when they change in an unfavorable direction by buying interest rate options. In the existing interest rate derivatives like interest rate swap, bond forwards and other interest rate derivative sequences, its launch is an important supplement to the market.
It is understood that before, LPR quotes have been closely following the benchmark interest rate, and there is a low sense of existence, which makes LPR-linked interest rate swaps (IRS) lack a useful place, and few people are interested. After the birth of the new LPR mechanism, MLF became anchored benchmark interest rate of the LPR, which will make LPR quotes float more frequently than before. Likewise, more financial institutions will switch to LPR quotes. Therefore, theoretically, the fluctuation of loan interest rates will be greater, so that companies and financial institutions have the willingness to hedge interest rate fluctuations and lock in interest rate risk.
"China's interest rate‘change anchor’has stimulated the need for enterprises and banks to carry out their own asset and liability management, interest rate risk and credit risk management." Jianghai Securities believes that the introduction of interest rate option business has enriched the variety of interest rate derivative transactions, and has helped to drive the originally inactive LPR interest rate swap transactions, making the participants more diversified and stimulating the vitality of the interest rate swap market.
The reporter learned that the types of interest rate options introduced this time are European options, and the products are linked to 1-year and 5-year LPR interest rates. The varieties include interest rate swap options, and interest rate cap and floor options.
Li Meijing, deputy general manager of the second department of the China Foreign Exchange Trading Center, introduced at the launch meeting that the trading center will provide the entire process of transaction, pricing and valuation services for interest rate options, including multiple quotations, such as inquiry, click-to-trade, etc. Organize active institutions in the interest rate derivatives market to provide quotes for the interest rate options market, and to provide the market with liquidity and pricing benchmarks.
Serve the real economy more powerful
According to international market experience, interest rate options are the most important interest rate derivatives other than interest rate swaps and government bond futures. A relevant person from Bank of China said that the official launch of RMB interest rate swap option transactions has also provided new tools and means for commercial banks to further use RMB interest rate derivatives to serve the real economy and finely manage RMB interest rate risk.
At the launch meeting on the first day, ICBC, Bank of China, China Merchants Bank (600036), Industrial Bank (601166) and many other financial institutions generally said the addition of interest rate option products in the inter-bank market is not only conducive to financial institutions to do the LPR interest rate risk management, but is also benefit to commercial banks serving the real economy more effectively under interest rate liberalization reform. At the same time, financial institutions have stated that they will promote the provision of LPR interest rate option trading services to overseas institutions and corporate customers to help companies cope with the risk of interest rate fluctuations corresponding to stock or incremental LPR loans.
Will accelerate the marketization of interest rates
"Under the new LPR formation mechanism, interest rate options, as a non-linear derivative instrument, can improve the pricing mechanism of interest rate risk, help financial institutions and the real economy to calm down the risk of interest rate fluctuations, and also have the positive effect on increasing the activity of the interest rate swap market." Zhang Jinqiu, vice president of HSBC China and co-director of Global Capital Markets, predicts that the trading volume of interest rate options on the inter-bank market will gradually increase in the future, which can provide a better pricing reference for companies to manage interest rate risk. In the long run, the expansion of the interest rate derivatives market will further accelerate the process of China's interest rate marketization. It is time to launch LPR interest rate options. At the launch meeting, Cui Wei, vice president of China Foreign Exchange Trading Center, pointed out that interest rate derivatives linked to LPR can effectively synergize the inter-bank market with corporate customers and help financial institutions serve physical enterprises. In the next step, the trading center will cooperate with the LPR reform to guide and assist banking institutions, especially with the bank's asset-liability departments, small and medium-sized banks to participate in the interest rate derivative market, and help corporate customers manage loan interest rate risk.

In order to encourage market development, the trading center will temporarily waive the commission fee for interest rate options in the first two years of the business operation.

人民币利率期权业务正式上线 首日35家金融机构完成127亿元交易
随着利率市场化改革持续推进，利率衍生品市场也迎来新的发展机遇。3月23日，银行间市场正式推出利率期权业务。上线首日，包括商业银行、证券公司以及私募基金等在内的111家金融机构或产品成为首批期权入市参与者要素。首日共计成交利率期权交易154笔、合计金额127.8亿元，35家金融机构完成报价交易。
据了解，此次推出的利率期权产品挂钩1年期和5年期LPR利率，包括利率互换期权和利率上下限期权。业内人士指出，利率期权产品是对现有利率衍生品序列的有力补充，在LPR改革进程中推出LPR利率期权业务有助于金融机构有效管理利率风险，推动利率市场化进程，更好地服务实体经济。
有助于对冲和管理利率风险
所谓利率期权，即一种与利率变化挂钩的期权产品，它是一项管理利率风险的有效工具。由于利率期权具有灵活、非线性的特征，市场参与者通过买入利率期权，可获得利率朝不利方向变动时保护的权利。在现有利率互换、债券远期等利率衍生品序列中，它的推出是对市场的重要补充。
据了解，此前LPR报价一直紧跟基准利率，存在感较低，这使得挂钩LPR的利率互换（IRS）缺少用武之地，也鲜有人问津。LPR新机制诞生后，MLF成为LPR锚定基准利率，将使LPR报价相比以前浮动的频率和幅度更大，并且更多金融机构将改用LPR报价。因此理论上贷款利率波动幅度会更大，使企业和金融机构有对冲利率波动、锁定利率风险的意愿。
“我国利率‘换锚’激发了企业和银行进行自身资产负债管理、利率风险和信用风险管理的需求。”江海证券认为，利率期权业务的推出使利率衍生品交易品种更加丰富，有助于带动原本不活跃的LPR利率互换交易，使参与主体更加多元化，激发利率互换市场活力。
记者了解到，本次推出的利率期权种类为欧式期权，产品挂钩1年期和5年期LPR利率，品种包括利率互换期权、利率上下限期权等产品。
中国外汇交易中心市场二部副总经理李梅静在启动会上介绍称，交易中心将为利率期权提供包括询价、点击成交等多种报价方式在内的交易全流程及定价估值服务，并统一组织利率衍生品市场活跃机构为利率期权市场提供报价，为市场提供流动性和定价基准。
服务实体经济更有力
按照国际市场经验，利率期权是利率互换、国债期货之外，最为重要的利率衍生品。中国银行有关人士表示，人民币利率互换期权交易的正式推出，也为商业银行进一步利用人民币利率衍生品服务实体经济、精细化管理人民币利率风险提供了新的工具和手段。
首日启动会上，工商银行、中国银行、招商银行(600036,股吧)、兴业银行(601166,股吧)等多家金融机构人士普遍表示，银行间市场新增利率期权产品不仅有利于金融机构进行LPR利率风险管理，也有利于利率市场化改革下商业银行更有效服务实体经济。同时，金融机构纷纷表示将推进向境外机构、企业客户提供LPR利率期权交易服务等工作，帮助企业应对存量或增量LPR贷款对应的利率波动风险。
将加速推动利率市场化
“在新的LPR形成机制下，利率期权作为非线性衍生品工具，能够完善利率风险定价机制，有助于金融机构和实体经济平抑利率波动风险，同时对提升利率互换市场的活跃度也有着积极作用。”汇丰中国副行长兼环球资本市场联席总监张劲秋预计，未来银行间市场利率期权的交易量将逐步上升，这能为企业管理利率风险提供更好的定价参考。长远来看，利率类衍生品市场的扩容，将进一步加速推动中国利率市场化的进程。
此时推出LPR利率期权正当其时。中国外汇交易中心副总裁崔嵬在启动会上致辞指出，挂钩LPR的利率衍生品可以使银行间市场与企业客盘有效协同，助力金融机构服务实体企业。下一步，交易中心将配合LPR改革，引导、协助银行类机构，尤其是银行资负部门、中小银行参与利率衍生品市场，帮助企业客户管理贷款利率风险。
为鼓励市场发展，业务运行前两年交易中心将暂免利率期权的交易手续费。