Hexun.com: SHFE Holds Special Training Program for Option Risk Management and Market Supervision

Updated on: August 2, 2015

Reported by Qiao Jing, Journalist from Hexun.com

Special Training on Option Risk Management and Market Supervision by Shanghai Futures Exchange (SHFE) was held in Shanghai, Beijing and Shenzhen respectively. Aimed at the hot issues that market concerned about, the SHFE invited senior experts from TMX Group of Canada and CITIC Futures to introduce the experience of overseas and Taiwan, to provide the reference for options risk management and market supervision and regulation to futures companies and options companies.

In the Shanghai session, the principal of SHFE pointed out that, options are different from traditional futures. In the future, some professional institutions will be required to provide liquidity to the market when listed. The experts of TMX Group explained in detail the options market maker's business model, access, rights and obligations, risk control and supervision, through a large number of classic cases, analyzed by contrast the risk control, regulation and the characteristics of the protection mechanism of overseas marketers. With years of experience in risk management in Taiwan options market, the experts of CITIC Futures analyzed the daily risk control process details, including collection of margin, calculation of dynamic equity, risk management of exerting right and risk disposition of specific market, etc. The content of the special training program plays an important guiding role in the development of Chinese options marketers and the construction of option risk control system of futures companies.

The special training has been positively responded by the market, more than 100 futures companies have registered, it has also been strongly supported by the futures association and relevant units. More than 200 participants attended the training including Futures institutions from Futures Department of  CSRC, China Futures Association, China Futures Market Monitoring Center, SHFE, Zhengzhou Commodity Exchange, China Financial Futures Exchange and related securities companies and futures companies.