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Derivatives

China Market Readies Option Launch

The debut of option contracts in China is imminent, marking a further step in the development of the mainland's financial markets.

The debut of option contracts in China is imminent, marking a further step in the development of the mainland's financial markets. "We're working hard to launch the first options contract in China," said Peter Zhang, chief financial engineering advisor and senior director of research at the Shanghai Futures Exchange.

Zhang said the exchange will launch options on copper futures early next year, which will be followed by options on wheat futures listed on the Zhengzhou Commodity Exchange. "This is a very important step for product innovation," said Zhang. Other products and eventually a domestic over-the-counter derivatives market will evolve in the coming years, he noted.

"Risk management and market making systems need to be ready and we also need to receive [China Securities Regulatory Commission] approval," he continued, noting the exchange expects to receive approval in the coming weeks.

For further stories on the development of the Chinese derivatives markets see below.

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