Launch of stock index futures option trading soon

By Wu Yiyao (chinadaily.com.cn) Updated: 2014-05-28 17:02

Zhang Shenfeng, head of China Financial Futures Exchange (CFFEX),said in Shanghai on Wednesday that the exchange has been pushing forward the launch of stock index futures option trading and will introduce such products as soon as possible.

Zhang told the 11th Shanghai Financial Derivative Forum that the introduction of stock index option trading will fill a blank in China's option trading, providing more tools to investors to hedge risks and bring more diversity to the derivative market.

However,Zhang did not give a timetable for the launch of stock index futures option trading. In a previous speech in Beijing on May 11, he had said that the conditions for the launch are mature, and the introduction of the option trading is subject to approval of regulators.

CFFEX has been researching and studying option trading for CSI 300, a gauge for China's stock trading in exchanges of Shanghai and Shenzhen. Simulation trading of CSI 300, which started in November 2013,has gone smooth so far,according to Zhang.

He also said CFFEX will soon introduce futures trading of CSI Smallcap 500 index and SSE 50 Index, another two indices for China's stock market climates to meet market demands.

CFFEX will actively prepare for the launch of financial futures trading platform and introduce cross rate futures and renminbi exchange rate futures under the guidance of policies for China (Shanghai) Piloted Free Trade Zone, said Zhang.