China's options market is still very young. It started with the birth of 20 13 OTC option market. It is supervised by China Securities Regulatory Commission, and the main participants are brokers, futures companies and commercial banks. Two years later, China's floor option market opened. In the past four years, there have been three stock index options and ten different commodity futures options on the market.
Since its launch, China's floor option market has made remarkable progress. For example, in 20 19, the average daily trading volume of Shanghai and Shenzhen 50ETF options was about 65,438 billion yuan, 8 times that of 20 15. Since the first commodity options was listed on 20 17, with the increasing awareness of market participants on options trading, the market scale of commodity options has also been expanding.
As an investor, do you want to know the difference between Shanghai Futures Exchange and the New York Mercantile Exchange in investing in gold futures options?
These two options based on COMEX and Shanghai Futures Exchange are similar to some extent, but they are different.
The gold option of Shanghai Futures Exchange is European, while the gold option of COMEX is American. This means that the gold option of Shanghai Futures Exchange can only be exercised on the expiration date, while the gold option of COMEX can be exercised at any time before the expiration date. The Shanghai Futures Exchange has also set stricter access restrictions on the gold options of individual and institutional investors. For example, individual investors need to provide historical records of derivatives transactions that meet regulatory requirements. In addition, there are differences between the price limit and the contract trading unit.
As for the similarities, the underlying assets of these two options are all gold futures, and they are all deliverable, which means that investors will get the corresponding gold and future positions when exercising. In order to control the risk, both gold options have position limits (although the size is different).
In order to ensure market liquidity, Shanghai Futures Exchange selected 14 qualified institutions as market makers to answer price inquiries at a certain frequency. Recruiting market makers is an important step to cultivate China's emerging options market. Other exchanges in China have adopted this mobile supply mechanism in trading options.
In terms of trading volume, investors are more interested in call options than put options. As of February 2 1 day, 2020, the average daily total trading volume of this option is nearly 50 million yuan. Among them, the average daily bullish trading volume is about 33.6 million yuan, and the average daily bearish trading volume is 654.38+0622 million yuan. Mainly due to the global hedging demand driven by various uncertainties from the end of 20 19 to the present. From the perspective of positions, the average daily positions of long contracts reached 10826, and the short position was 6633.
All in all, the benefits of expanding China's gold investment channels are obvious. Gold futures options not only make the existing gold derivatives market in China more perfect, but also provide enterprises in the gold industry with more effective risk management tools.
At the same time, the investment dimension of gold has also been improved. Investors can now trade not only the price of gold, but also its volatility and time value. Expanding the gold derivatives market will help China to establish a more efficient, transparent and fair gold pricing mechanism and further improve the gold market in China.