DCE to Carry out LPG Futures and Options Trading

SCI99

2020-03-20

DCE to Carry out LPG Futures and Options Trading

On March 19, 2020, China Securities Regulatory Commission approved Dalian Commodity Exchange (DCE) to carry out LPG futures and options trading. The LPG futures contract will begin trading on March 30, 2020, and the formal listing trading time of LPG options contract is the next trading day when the corresponding futures contract has been concluded.

According to an announcement on the official website of DCE on March 9, in order to fully listen to market opinions, improve contract rules and ensure the functioning of the market, Dalian Commodity Exchange LPG Futures Contract (Exposure Draft), Dalian Commodity Exchange Settlement Management Measures (Draft Amendments for Comment), Dalian Commodity Exchange Delivery Management Measures (Draft Amendments for Comment), Dalian Commodity Exchange Standard Warehouse Receipt Management Measures (Draft Amendments for Comment), Dalian Commodity Exchange Risk Management Measures (Draft Amendments for Comment), Dalian Commodity Exchange Hedging Management Measures (Draft Amendments for Comment) and Dalian Commodity Exchange LPG Futures Business Detailed Rules (Exposure Draft) were released, indicating that the LPG futures and option listing at DCE entered the final preparation stage.

China is the largest LPG consumer and importer in the world. In recent years, China’s LPG prices fluctuated violently, accelerating the development of LPG energy futures, which can not only serve the national energy security strategy, but also help LPG related enterprises to innovate sales mode and improve risk management ability. In addition, it is of great significance to promote the energy market-oriented reform and ensure the stable operation of China’s petrochemical industry.

Next, China Securities Regulatory Commission will urge DCE to continue to make preparations to ensure the smooth launch and stable operation of LPG futures and options.

As the first batch of professional organizations for LPG market research, SCI focuses on providing timely and accurate price and in-depth analysis and forecast of the commodity market. In order to fully prepare for the listing of China’s first gas energy product futures and options, SCI can provide China LPG & Deep-Processing Datapack, customized data services and reports for industrial customers and non-industrial customers. The datapack covers LPG related product capacity, output, commodity volume, inventory, import volume and export volume, storage and logistics, unit profit, regional arbitrage, etc.

SCI has established a price assessment system and a complete assessment model by adhering to the principle of neutral third party and strictly implements the requirements of the price assessment methodology to maximize the timeliness, authenticity and traceability of market transactions. Through the standardization of price assessment, SCI’s price assessment will provide benchmark for buyers and sellers, so as to improve the efficiency of the transaction and provide effective reference for LPG futures and options trading.

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