The pulp variety trading launched in the previous period will promote the commodity swap business next year

On December 15, 2021, the Shanghai Futures Exchange (hereinafter referred to as the Shanghai Futures Exchange) launched four new services, including pulp variety standard warehouse receipt trading, bonded warehouse receipt transfer quotation area, period transfer quotation area, and futures linkage trading client on the standard warehouse receipt trading platform (hereinafter referred to as the platform).

Jiang Yan, chairman of the institute in the previous period, said at the launch ceremony that the launch of new varieties and new services will further promote the integration process of the current period in the previous period and better enhance the breadth and depth of the exchange's service to the real economy. Next year, the previous period will continue to exert efforts in over-the-counter derivatives, basis trading, bonded warehouse receipt trading and other aspects, focusing on the launch of commodity swap business, and making every effort to stabilize the basic work of the development of the real economy.

Start a pulp standard warehouse receipt transaction

The pulp standard warehouse receipt transaction ran smoothly on the first day of launch.

As of the close of trading on December 15, 2021, a total of 997 tons of pulp varieties were traded on the day of standard warehouse receipts, with a turnover of 5.6566 million yuan. Shanghai Xinhu Ruifeng Financial Services Co., Ltd. and Industrial Securities Risk Management Co., Ltd. became the buyers and sellers of the first transaction on the day of the standard warehouse receipt transaction of pulp varieties, and the designated depository banks were Industrial and Commercial Bank of China and China Construction Bank. In addition, Dealers such as Zhejiang Period Industry, Hongyuan Hengli, Yongan Capital, and Zhejiang Jingcheng participated in the first day of trading.

It is reported that bank of China Shanghai branch and Bank of Jiangsu Shanghai branch issued the first batch of pulp standard warehouse receipt pledge loans to Jinyi Trading (Shanghai) Co., Ltd. and Industrial Securities Risk Management Co., Ltd. respectively, with loan amounts of 9 million yuan and 1.39 million yuan respectively.

Weng Haidong, general manager of the marketing department of Xiamen Jianfa Pulp and Paper Group, said that the introduction of pulp standard warehouse receipt transactions has solved a number of pain points of entity enterprises, and in the traditional spot trade of pulp, trading enterprises must do qualification certification, and there are many problems in trade compliance management. In addition, the transfer of cargo rights and funds in the transaction, quality control are pain points and difficulties, the newly launched standard warehouse receipt transaction effectively solves these problems, improves efficiency, makes the futures linkage more close, especially accelerates the convergence of the futures price.

At present, the standard warehouse receipt trading platform in the previous period has launched 14 varieties of standard warehouse receipt trading business and natural rubber extended warehouse receipt trading business such as copper, aluminum, zinc, lead, nickel, tin, natural rubber, silver, rebar, wire rod, hot-rolled coil, stainless steel, petroleum asphalt, pulp, etc.

Statistics show that the platform has accumulated 15,194 transactions (unilateral statistics) this year, with a total of 401746 warehouse receipts, 1.5782 million tons, and 112.844 billion yuan (an increase of more than 7% year-on-year). Since the launch of the platform, the cumulative transaction volume has reached 491.127 billion yuan, and the cumulative number of signed traders is 559.

The opening period is now the last mile

What attracts people's attention is that the bonded warehouse receipt transfer quotation area and the period transfer quotation area launched on the same day will provide traders with an information release platform for bonded warehouse receipt transfer and period transfer, improve the efficiency of warehouse receipt transfer, and solve the market pain point problem of information asymmetry.

The quotation varieties in the bonded warehouse receipt transfer quotation area are medium sulfur crude oil (SC), No. 20 rubber (NR), low sulfur fuel oil (LU), cathode copper (BC) and other listed varieties in the Shanghai International Energy Exchange Center, and the quotation varieties in the futures transfer quotation area are platform tradable varieties. In addition, the platform has also launched a futures-cash linkage trading client, providing futures-to-cash linkage trading functions to facilitate traders to carry out value preservation at the futures end more quickly.

It is understood that on the first day of the launch, Xinhu Ruifeng, Dongzhengrun and the first day used the futures linkage trading software to carry out the hedging business of silver warehouse receipt trading and futures trading. There are 24 quotations in the special quotation area for the transfer of funds, involving 4 customers, namely Jinchuan Group, Yongan Ruimeng, Dongzheng Runhe and Pengxin Resources; 3 quotations in the bonded quotation area, involving 2 customers, namely Jinchuan Group and Zhejiang Jingcheng.

"In the past, the cash transfer information was opaque, but the launch of the special area solved this problem, enhanced the warehouse receipt processing ability of the risk management subsidiary, and allowed the risk management subsidiary and other traders to dare to participate in more varieties of near-month positions and futures delivery, which can promote the effective return of the futures market spread, so as to open up the last mile of the combination of futures and cash." Xia Changchang, general manager of Dongzheng Runhe Capital Management Co., Ltd., pointed out.

Source of this article: Securities Times