Even the commodity exchange accelerated the listing of ethylene glycol and styrene option products

Dalian Commodity Exchange issued an announcement on December 15 to solicit opinions from the market on ethylene glycol futures options and styrene futures options (hereinafter referred to as "ethylene glycol options" and "styrene options") contracts, and the deadline for feedback is December 21.

As important liquid chemicals, ethylene glycol and styrene have been affected by many factors such as the epidemic, overseas market shocks, and domestic capacity expansion in recent years, and their spot prices have fluctuated frequently. Since 2018, ethylene glycol and styrene futures have been listed successively, and the functions of risk management and price discovery have been effectively played. While actively participating in the futures market, relevant industrial enterprises call for the listing of option contracts as soon as possible to provide more accurate and powerful hedging tools and strategies.

According to this announcement, the ethylene glycol and styrene option contracts are the same as the listed option contracts on the Dalian Commodity Exchange, both are American options, applicable to the same set of rules system, and the strike price spacing and minimum change price are designed in a targeted manner. In addition, the option expiration date and last trading day are the 5th trading day of the month preceding the delivery month of the underlying futures contract, which is consistent with the listed option variety.

The relevant person in charge of Dalian Commodity Exchange said that in the process of developing the option contract, Dalian Commodity Exchange conducted in-depth discussions with industry experts, industrial enterprises, futures companies, etc., and finally formed this draft for comments, and welcomes valuable opinions and suggestions from all parties in the market.

Up to now, the Dalian Commodity Exchange has launched 11 commodity options, covering agricultural products, black, chemical and other fields. Among them, in the chemical sector, 4 chemical options have been listed on the market of linear low-density polyethylene, polyvinyl chloride, polypropylene and liquefied petroleum gas.