The China Securities Regulatory Commission (CSRC) has approved the trading of iron ore options at the Dalian Commodity Exchange (DCE), with trading set to be launched on December 9 this year.
The listing of iron ore options will further meet enterprises' requirements for risk management and lower hedging costs.
Trading of iron ore futures at the DCE had commenced in October 2013, while more than 1,200 enterprises have participated in iron ore futures trading at the DCE, with foreign traders being allowed to participate in the trading since May 2018. By the end of October this year, more than 170 overseas clients from 15 countries and regions including Singapore, Australia and the United Kingdom, as well as China's Hong Kong, have opened accounts at the DCE, with more than 110 having participated in iron ore futures trading.
At present, China's iron ore futures have become the largest iron ore derivatives market in the world, with obvious advantages in market scale, industrial participation and international influence, which has laid a good market foundation for the listing of iron ore options.