On May 17, the “Practical Training on Commodity Trading & Market Making in Shanghai” was successfully held by Dalian Commodity Exchange (DCE) in Shanghai. Attending the training were 40 people including CROs, traders and researchers from futures companies and risk management subsidiaries. They’ve engaged in a simulation on trading and market making business and summarized and shared best practices in the international markets, with a view to boost the development of the market making business in China.
DCE updated the Measures for Market Maker Management of Dalian Commodity Exchange in December 2018, in which futures dealers and options market makers are referred to as “market makers” for unified management. This has further standardized market making behaviors and urged market makers to give better play of their role in enlivening market-making contracts and increasing their liquidity. Currently, 4 futures products and 2 options products of DCE have adopted the market maker system, and there are a total of 82 market makers, including 10 for soybean meal option, 12 for corn option and 15 for soybean meal, corn, No. 2 soybean and iron ore futures, respectively.
A representative of the trainees said that this training was very practical. The simulation is helpful to standardize market making behaviors, enhance the market making enthusiasm, increase the overall competitiveness of member market makers, and better allow the futures market’s role of serving the real economy.
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