He Will Keep Up With The PTA Futures And Escort The Industry. Mr. Zheng Has Consulted Publicly On The PTA Options Contract.

In China's textile industry chain, cotton is the most important natural fiber, polyester polyester is the largest amount of chemical fiber, PTA is the most important raw material for polyester polyester production. At present, as domestic large-scale polyester enterprises further promote the development of industrial chain integration, their competitiveness and influence on the global "PX-PTA- polyester" industry chain are further enhanced. If the market operation of cotton affects the "nerve" of the entire textile industry chain, PTA will be the downstream product of the refining and chemical industry, and at the same time, as one of the core raw materials for producing polyester, its market operation can affect the "nerve" of the whole polyester industry.

In order to better improve the PTA option contract, the Zhengzhou Mercantile Exchange (hereinafter referred to as the "Zheng Shang") issued a notice in November 12th to solicit public opinions and suggestions on the PTA option contract, with a deadline of November 18, 2019.

The construction of PTA option market requires all parties to work together. We hope that through this public consultation and suggestions from all sides, we will promote the scientific and rational design of option contracts, and ensure that the PTA option will be stable and functional after the listing. Zheng Shang's official said.

PTA option will have more personality than cotton option.

According to Zheng Shang's relevant person in charge, in the design process of PTA option contract, Zheng merchants actively learn from the contract design convention of international commodity option market, and refer to the experience of cotton option market operation, which fully embodies the essence of commodity option products in terms of option contract type, mode of execution, trading unit and quotation unit. According to the actual situation in China and the characteristics of varieties, the contract terms such as the contract month, the distance between the exercise price and so on were differentiated to effectively meet the market demand. In the design of terms and conditions of options trading and final trading day (maturity date), we must firmly keep the bottom line of risk and take account of market liquidity.

According to the draft of this announcement, the PTA option trading unit is the 1 hand PTA futures contract, which is convenient for investors to hedge futures risk. The minimum change price of PTA option is set at 0.5 yuan / ton to facilitate investors to grasp; the last trading day of PTA option (maturity date) is the third trading day of the month before the delivery date of the target futures contract, which is consistent with the listed cotton option. In order to avoid the risk of delivery month, we need to protect the maturity of our customers.

Drawing on the experience of international commodity option market and the experience of cotton option market, the PTA option exercise method is set to American option, and the buyer can exercise the right on the expiry date and the previous trading day.

Compared with cotton option, PTA option contract has three distinct individualized designs.

First, the number of PTA option exercise price contracts is consistent with cotton options. According to the characteristics of PTA futures price fluctuation, the first day of PTA option will be hung out of 13 call options and 13 put options respectively, so as to ensure that the futures price fluctuation range of the next day mark is covered. With the change of PTA futures price, if the real value or virtual value PTA number is less than 6, Zheng will increase the new option price corresponding to the exercise price, so as to meet the needs of investment and transaction in time.

The two is the PTA active month option contract hanging standard. At present, PTA futures are not introduced into the market maker.

The three is to set the price spacing of PTA options. At present, the ratio between the price spacing of domestic commodity options and the exercise price is between 1%~2%. According to the operating range of PTA futures price, the price spacing of 50 yuan / ton, 100 yuan / ton and 200 yuan / ton will be set at the dividing point of 5000 yuan / ton and 10000 yuan / ton respectively.

PTA option will promote industrial structure optimization

An option is a contract that gives the holder the right to purchase or sell an asset at a fixed price at any time before a particular date or any day before that. It is a basic risk management tool. Options trading began in the late eighteenth Century in the US and European markets. At present, overseas mature futures are listed on matching options. Statistics show that in 2018, the number of options in the United States reached about 5000, and about 6 billion hands were traded in that year.

The development of China's option market is still in its infancy. At present, there are 7 options listed in China, and cotton options are among the 7 varieties. In January 28th of this year, cotton options were successfully traded in Zhengshang.

After the listing of cotton options, the diversification and individualized hedging needs of cotton enterprises are better met, and the risk hedging cost of the "insurance + futures" experiment is reduced. The overall effect of the "insurance + futures" experiment is enhanced, which provides a useful reference and effective supplement for the cotton price subsidy policy. At the same time, with cotton futures, insurance and other financial instruments to cooperate with each other, cotton options will be important for deepening cotton target price reform, exploring new agricultural support and protection system and improving agricultural subsidy policy after listing. Earlier, Zheng Shang listed options and sugar options.

"Options are not the icing on the cake, but the futures. Call option is equivalent to buying insurance, premium is called royalty, and protection price is called exercise price. An industry insider briefed reporters.

According to the introduction, the characteristics and advantages of options include: avoiding risks, taking into account revenue; no pressure to catch up, and holding; diversified "insurance price", personalized combination strategy. "Futures contracts are worthless, requiring only performance bonds, and options need to be paid for rights." The industry insiders said.

The polyester industry insiders told reporters: "when PTA futures just launched, many enterprises did not understand or even contradict at the beginning, but in recent years, with the changing pattern of supply and demand of industry, PTA futures have become a financial tool for polyester enterprises and industries. At present, China's large-scale polyester leading enterprises have entered a new round of expansion. Many large PTA installations in China have been centralized, and many enterprises are building new PTA projects. Obviously, there are new changes in the supply and demand pattern of China's PTA market, and there are new changes in the trading pattern. In this context, polyester industry chain enterprises need to learn better financial knowledge, grasp more financial instruments, and better escort the operation of entities and industries.

PTA futures listed in Zhengshang in 2006, is now a "Star" variety in China's futures market. At present, 90% of PTA production enterprises, trading enterprises and 80% polyester enterprises in China are using PTA futures to avoid risks. Especially in recent years, the capacity of PTA futures market to serve the entity industry has been continuously enhanced. In the domestic futures variety function evaluation, PTA futures are stable in the top 5, and are the best chemical products with the best function. In November 30, 2018, PTA futures successfully introduced overseas traders, becoming the first chemical industry to introduce foreign traders in China, and opened up the process of internationalization.

The PTA option will become one of the first listed energy and chemical options in China after its listing. It will also keep pace with PTA futures and play an active role in stabilizing the production and operation of PTA spot enterprises, promoting the optimization of industrial structure and the development of high quality. In addition to PTA options, Zheng's upcoming options include methanol options and rapeseed meal options.

Reporters learned that before this, Zhengshang had organized many demonstration organizations such as industrial enterprises, investment institutions, Futures Company and market makers. The business rules and implementation rules of PTA options were sorted out, and it was considered that the rule system of general trading company was universal and could meet the needs of listing PTA options.