Futures Market Is Eager For Institutional Investors To Participate.

Crude oil futures have not yet been listed, and some have begun to worry whether crude oil futures will follow the footsteps of iron ore futures and become a "personal" market: hot deals but no pricing power.

There is no pricing power in the hot market.

Dccu iron ore futures listed for nearly two months in a year, activity has exceeded the world's most influential Singapore Exchange iron ore trading platform, especially in the first month of the listing volume exceeded the new exchange iron ore swap 2012 total annual turnover.

However, the reporter learned that the iron ore purchase by iron and steel mills is still based on Prof index and the price of the new exchange.

This means that China has not gained the international pricing power of iron ore.

Analysts told reporters that this is related to the formation of the new exchange and the iron ore participants of the big business institute.

According to recent data released by Prof energy, the new iron ore trading platform of the new stock exchange is composed of 31% Asian steel mills, 34% of banks, 6% of the fund, 26% of the large traders and owners, and 3% of the total, accounting for 97% of the institutions, steel mills and traders.

Among them, most of the Asian steel mills are private steel mills in China.

And the big iron and steel futures participants constitute: 74% of individuals and 26% of the company.

Among the company's customers, steel mills and traders accounted for less than 4%.

It was originally an effective way for spot enterprises to hedge, but Chinese industrial customers seldom participated in the domestic market.

Why?

According to Prof energy analysis, the new stock exchange's iron ore index futures contract is trading at least 500 tons per unit, and the big business is 100 tons per hand.

However, the practice of developing new contracts by the new stock exchange to attract institutional investors is not effective in China.

It is reported that some of the futures have been upgraded to large contracts, but after the upgrade, the activity of contract pactions has dropped sharply, and has not recovered to date and become a "zombie" variety.

An analyst familiar with iron ore futures at home and abroad told reporters that the reasons for Chinese steel mills and traders to go to the new stock exchange are comprehensive.

One of the reasons is that China's iron ore imports account for over 60%, while the imported iron ore is priced in US dollars, while the new exchange is priced in US dollars.

Two of the reasons, steel mills which account for more than half of steel production are state-owned enterprises, especially local state-owned enterprises.

In addition, China has not yet released institutional investors (except private placement) to participate in commodity futures policy, which also affects the composition of China's iron ore futures participants.

Crude oil futures market is approaching. As one of the international varieties of futures market, one of the goals is to become the benchmark price in Asia.

From the recently disclosed contract design, most of the crude oil futures contracts are in line with international breakthroughs, such as net trading and night trading, but unlike the international mainstream oil futures trading unit, the 1000 barrels are different, and the trading unit is 100 barrels.

The design contract of Shanghai international energy center is obviously adapted to China's national conditions.

According to the insiders, DAC is designed to understand the futures market of China and design contracts that meet the needs of the market.

The degree of marketization of China's crude oil industry is not as good as that of the iron and steel industry.

A futures trader said that after the listing of crude oil futures, it will also face less pressure from domestic industry customers.

If so, it is difficult to have international pricing power in the short term.

"If we want to change the embarrassment of the individual market, we must make policy assistance."

A futures exchange official told reporters that exchanges should also increase innovation and develop innovative products to attract institutional investors to enter.

From the international futures conference held recently, the Shanghai futures exchange intends to push forward nonferrous metal index futures, and bridge between the futures market and institutional investors to solve the problem of institutional investors entering the market.