Recently, the State Administration of Foreign Exchange issued the interview.
asked:
A: Options and forwards, futures, swaps (swap) is the most basic of the four derivatives. July 2005 the RMB exchange rate formation mechanism reform, China's foreign exchange market to accelerate the development of increasingly rich variety of transactions, the bank market and the interbank foreign exchange market to customers launched forwards, FX swaps and currency swaps, foreign exchange derivatives three yuan . In 2010, various types of RMB foreign exchange derivatives transactions total more than 1.6 trillion U.S. dollars, an increase of 64.8%. However, the developed economies and some emerging market economies compared to the trading of foreign exchange market continued to show a single species, product features is not enough diversification. With the increased flexibility of RMB exchange rate, enterprises, banks and other market players use derivative products for hedging demand rising, this is the yuan foreign exchange derivatives market development of the internal requirements.
recent years, enterprises, banks and other market players understanding of derivative products mature, reasonable, flexible use of existing range of products based on this new product for the options trading will increase. At present, the domestic foreign exchange market has basically met the introduction of options trading in the macro and micro conditions: First, increased exchange rate flexibility, there needs Options Exchange Volatility; Second, the domestic foreign exchange market has a certain depth, options trading on the market can accommodate fluidity; third is steadily RMB interest rate market, the bank's capital management and provides the basis for pricing; Fourth, commercial banks have some foreign currency options trading experience, as the RMB foreign exchange options trading provides a useful reference. In this case, the market development needs, the State Administration of Foreign Exchange decided to launch options trading.
asked:
A: The Second, the transaction principle, provided options for its customers real needs should be consistent with the principles of business; can buy call options and options on the reverse positions, not to sell options; addition to a specific range of transactions, the option exercise due should take full delivery. Third, market access, foreign exchange options business of banks to conduct file and record management, do not set the non-market access conditions. Fourth, exchange settlement and sales positions in management, the bank's Delta options trading positions into comprehensive settlement and sale position of unified management.
Q: foreign exchange options trading will take on the risk control measures?
A: The State Administration of Foreign Exchange in conjunction with the departments concerned to take the following four aspects of the main measures to control the options business, market risk:
First, the market will initially be limited due to delivery of product type general European options. General structure of relatively simple European option, the banking pricing and risk control requirements are relatively easy, but also easier for customers to understand the overall risk control.
Second, do not allow customers to put option. Taking into account the risk of domestic enterprises to identify and control is still in growth stage, in order to avoid over-commitment transaction risk, the early development of the market only allows companies to buy options, sell options against. From international experience, limited companies
Third, uphold the principle of real need. Forward exchange settlement and sales operations with the existing line, to prevent large-scale purely speculative trading, options trading enterprises must carry out trade, investment and other real trading background.
Fourth, to enhance options trading of bank supervision. First, market access, strict management, and requiring banks must have qualified forward transactions more than three years to ensure that participating banks have the necessary trading experience and risk management capabilities. Second, the options business into the bank for foreign exchange management policies by banks to implement the scope of examination, all-round strengthening supervision. The third is to strengthen market surveillance and operational guidance, regular monitoring of bank's risk profile options business.
asked:
A: China's interbank foreign exchange market is an important part of the foreign exchange market, the market and bank customers rely on each other, are indispensable. In recent years, reflects the development of interbank foreign exchange market intermediary services, industry self-regulation and government regulation characteristics. China Foreign Exchange Trade Center as the interbank foreign exchange market, trading platform providers, industry self-regulation and government supervision of the lead actors, according to the will of market participants, the organization completed the inter-bank trading rule-making options markets and trading platform development and other preparation. State Administration of Foreign Exchange was February 14, 2011 approved the China Foreign Exchange Trade Center organizations in the interbank foreign exchange market foreign exchange options trading yuan.
Q: How do the current introduction of options trading and the relationship between the RMB exchange rate formation mechanism?
A: Since July 21, 2005, China began to implement a market-based, with reference to a basket of currencies, a managed floating exchange rate system. Since then, in addition to the international financial crisis during the special circumstances, the RMB exchange rate flexibility in growing, which will be the future trend. In theory, the volatility of a currency they do not tend to zero, options trading can be carried out.
example, from June 19, 2010 declared the People's Bank of China to further promote the reform of RMB exchange rate formation mechanism to the end of 2010, the central parity of RMB against the U.S. dollar maximum amplitude of the next day was 295 basis points, the average daily volatility of 64 basis points ; In the meantime, the central parity of RMB against the U.S. dollar appreciation of 78 days every other day, 53 day every other day for depreciation, 1 day and the previous day flat. Same period, the interbank foreign exchange market trading price of the RMB against the U.S. dollar increased the flexibility of a corresponding transaction price relative to maximum amplitude at the central parity of the day were 0.16%, the largest day trading price volatility (highest price - lowest price) at all 113 basis points higher than the former and 2009 to restart the reform on average increased significantly.
Q: In the future options to promote domestic foreign exchange market on what plan?
A: The introduction of options trading is just beginning the development of the domestic options market, the State Administration of Foreign Exchange will be with the relevant departments, according to market conditions, operating conditions and market, develop the market and play the main innovation in products the leading role, and steadily promote the development of options markets.
No comments:
Post a Comment