China Securities Journal: IMCI Futures, Relevant Derivatives to Be Launched

Updated on Nov 10,2014

By Ye Siqi

On November 8, the “Investment Forum of IMCI (Industrial Metal Commodity Index) and Relevant Derivatives”, which is hosted by Huaxi Futures and supported by the Shanghai Futures Exchange (SHFE), was held in Chengdu. Over 120 experts from the SHFE, China Futures Margin Monitoring Center, futures companies, securities companies, fund companies, banks, insurance companies, and relevant enterprises attended the forum.

Xiong Jiabin, General Manager of Huaxi Futures, said that since the China Securities Regulatory Commission began to solicit opinions on “No. 1 Operation Guide of Publically Collecting Securities Investment Fund – Guide of Commodity Futures Trading Open Fund”, China’s commodity futures market has embraced new development opportunities. Judging from the development experience of global commodity index, the commodity index not only is a bridge connecting the futures market and institutional investors, but also provides guarantee for industry customers to effectively use the futures market for risk management. The close connection of the IMCI futures and the existing nonferrous metals futures and the launching of the IMCI futures will offer real enterprises more choices in hedging strategies, which will make possible the presence of more diversified hedging and fill in the gap of no commodity index futures in China. Besides, the trading features of the index will bring more investment opportunities to the mass quantitative trading investors. In the future, the commodity index futures will become an important innovative tool in the futures market as its functions in optimizing market structure, improving liquidity, and enriching hedging and arbitrage means are further strengthened.