New Mechanism! Zhengshang Started The Selection Of Cotton Futures Market Makers To Enhance The Overall Activity.

In May 9th, the Zhengzhou Mercantile Exchange issued a notice that it would select cotton yarn futures market makers through a solid competition.

Cotton futures were listed on Zhengshang in 2017, and attracted widespread concern in the industry since its launch.

At present, the cotton yarn futures market is running smoothly and has great potential for development.

As a raw material of cotton yarn, the activity of cotton futures market is obviously improved. Under this background, the market has high hopes for cotton yarn futures.

In order to further enhance the overall activity of cotton yarn futures, Zheng merchants drew on the successful experience of the market maker system in improving the liquidity of futures contracts in recent months. The market maker mechanism will be introduced on the newly revised cotton yarn futures contract. Initially, the market makers will offer bilateral quotas for 1, 5 and 9 contracts, and then gradually activate other contracts.

It is understood that the cotton yarn futures market real market selection time is from May 15, 2019 night to July 31st, the selection of the target is the first round of the methanol real trials, the first week to complete the offer obligations of the agencies, the competition period through the bilateral quotation instructions for cotton yarn 2001 contract to provide continuous quotes.

Industry analysts believe that the introduction of market makers on cotton yarn futures is conducive to better development of cotton yarn futures.

At the same time, because of the high correlation between cotton futures and cotton futures, market makers can also hedge the risk of market making through cotton futures and options, which is also beneficial to enhance the activity of the whole system of cotton derivative derivatives, and further play the role of the relevant futures variety service entity economy.