2. Term matching: Hedging transactions should be as close as possible to the enterprise's procurement, processing and sales processes, and the term of derivative transactions is determined by the production process, which helps enterprises manage intertemporal business risks.
3. Equivalent scale: The scale of hedging transaction depends on the strategic choice of the enterprise, but generally speaking, it should not be too far from the actual spot production and operation scale. If the scale is too small, the hedging effect is very small; If the scale is too large, or even greatly exceeds the spot scale, it will amplify the business risk of the enterprise and is excessive speculation on the price.
4. Opposite direction: Only when the hedging direction is opposite to the spot direction can the risk of price fluctuation be hedged, otherwise it is only one-way speculation on the price, which will amplify the risk.
5. Simple structure: By slightly adjusting the trading elements of various basic derivatives, products with different structures can be combined. The more complex the product, the greater the possible benefits under certain circumstances, but it may also be accompanied by more extreme amplification of risks. Simple structure is to meet the needs of avoiding risks as much as possible, and at the same time give up some pursuit of extreme value to better protect their core interests.
For China's large commercial banks, strengthening the capacity building of basic research, strengthening the ability of system, process, customer access and counterparty risk management and control, attracting professionals, establishing price models and becoming market makers who can quote prices are the basis for ensuring the steady development of this business. First, continuously improve the ability of basic research. Commodity has the characteristics of foundation and internationalization, which has a wide influence, and its price affects the international people's livelihood, so it has high research value. At the same time, it has both physical and financial attributes, and the influencing factors are complex. The related industries involved in different commodity categories have different characteristics, and the specialization requirements of commodity research are higher. Generally speaking, from precious metals to energy, basic metals and agricultural products, the stronger the macroeconomic influence, the weaker the fundamental influence. To do a good job in commodity futures business, we should strengthen macro research and keep track of macro policies and economic and financial related data at any time; It is also necessary to deepen variety research, accumulate industry knowledge, and strengthen industry risk control while improving service capabilities; The second is risk management and control ability. Derivatives are leveraged because of margin trading. If a complex transaction structure is added, a link may default, which will produce a chain reaction and produce a large and intractable systemic risk. Therefore, banks must establish a set of business operation risk management process, embed risk control in every link of business development, and understand your customer compliance inspection, deposit ratio, stop loss setting, etc. After the financial crisis, the Basel Committee gave corresponding consideration to the development of derivative products by banks. At present, domestic derivatives participants are mainly institutional investors, with capital constraints as the core, and customers' access requires participants to have certain tolerance. In addition, in derivative trading business, managing counterparty risk is an important link to prevent system risk; The third is to become a market maker and explore the profit center model. The risk management and control during the existence of derivative products has its particularity. It is suggested to learn from international advanced practices, introduce professionals, establish a price model through modern technology, and gradually establish a credit risk management system that is more suitable for trading needs from the measurement of margin, capital, collateral and risk exposure, so as to quote a price that reflects the relationship between market supply and demand after risk weighting and become a market maker. In addition, it is also important to cultivate talents and improve the effectiveness of incentives and constraints. At present, large enterprises often choose their partners through bidding. Simple hedging has been difficult to meet the needs of large enterprises. What they need is a series of professional services that match the business strategy of the enterprise. Before entering the futures market, such enterprises will establish an operation system, not only the futures management department, but also the operation process and risk control system, which requires the financial institutions that serve them to integrate resources, and the front office, middle office and back office cooperate with each other to provide effective system solutions. Because the profit and loss of derivative products are closely related to the valuation time and price, it is suggested that on the basis of improving the valuation technology, independence and marketization comparison, we should actively explore the establishment of a performance-oriented assessment incentive and restraint system, learn from international common practices, and adopt deferred payment and other ways to pay according to performance to maintain the competitiveness of the salary market.
To sum up, commodity and futures business is not only an innovation-intensive field, but also a frontier field of derivatives in the international market. With the marketization reform of interest rate and exchange rate and the promotion of RMB internationalization, all kinds of market participants in China have an urgent need for risk management. Because commodity trading has both physical and financial transaction attributes, large banks actively expand their commodity business and provide risk management services related to market price fluctuations with the advantages of research, information, talents, technology and capital, which is not only in line with the direction of China's economic transformation, reform and development, but also the foothold of serving customers' needs and realizing bank transformation.