9 Moon 21 morning of the day 9 At that time, China’s first industrial product option—the copper option—was officially listed for trading on the Shanghai Futures Exchange (hereinafter referred to as SHFE). Luo Hongsheng, Director of the Futures Regulatory Department of the China Securities Regulatory Commission (CSRC), attended the listing ceremony and read out a congratulatory message from Fang Xinghai, Vice Chairman of the CSRC. Zheng Yang, Director of the Shanghai Municipal Financial Services Office; Shang Fushan, Vice President of the China Nonferrous Metals Industry Association; and Jiang Yan, Chairman of the SHFE, delivered speeches in succession and jointly launched the trading of the copper option. Yan Shaoming, Deputy Director of the Futures Regulatory Department of the CSRC, read out the CSRC’s “Approval on Approving the Shanghai Futures Exchange to Conduct Copper Option Trading.” Xi Zhiyong, General Manager of the SHFE, presided over the listing ceremony.

　　Implement the Central Government’s Guidelines and Develop Derivatives Instruments

　　In his congratulatory message, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission (CSRC), pointed out that the official launch and operation of copper options represent the CSRC’s implementation of the spirit of the 19th National Congress of the Communist Party of China and the directives issued by the Party Central Committee and the State Council. “ Steadily increase the variety of futures and options products. ” The specific measures required also mark the first time that China’s options products have expanded from the agricultural sector into the industrial sector. The copper industry plays a vital role in China’s industrial system and commodity markets. Copper futures are among the most mature products in China’s futures market. The launch of copper options is of great significance for enhancing risk management capabilities of copper industry enterprises, promoting coordinated development between on-exchange and off-exchange markets, and boosting the pricing influence of China’s copper futures market. It will further consolidate the Shanghai Futures Exchange’s position as one of the world’s three major copper pricing centers.

　　In his speech, Zheng Yang stated that the launch of copper options will provide entities and institutions in the related industrial chain with richer and more flexible financial derivatives. This development is of great significance for enhancing the price-discovery function of the futures market, improving China’s pricing capabilities in the futures market, and strengthening the radiating power and global influence of Shanghai as an international financial center.

　　In his speech, Shang Fushan stated that China is the world’s largest producer and consumer of nonferrous metals, as well as the globe’s leading spot and futures market for these metals. The Shanghai Futures Exchange is a domestically authoritative platform for trading nonferrous metal futures, offering a mature range of nonferrous metal futures products and having become the benchmark for pricing in spot production, trade, and circulation.

　　Copper futures represent the most market-oriented and internationally integrated product within the nonferrous metals futures series. They boast a large market size, excellent contract continuity and liquidity, a well-balanced investor structure, and a substantial number of real entities actively participating in trading. Copper options are a long-awaited financial innovation product for China’s nonferrous metals industry.

　　Shang Fushan pointed out that the launch of copper options will help enhance market functions, elevate China's role and status in the international pricing system for nonferrous metals, and strengthen the risk management capabilities, market competitiveness, and internationalization level of Chinese nonferrous metal enterprises. Under the careful organization and stringent supervision of the Shanghai Futures Exchange, copper options will surely operate smoothly and fulfill their intended functions, laying a solid foundation for the future introduction of options trading on other nonferrous metals.

　　In his acceptance speech, Jiang Yan stated that the launch of copper options marks a significant milestone for the Shanghai Futures Exchange. “ One main body and two wings ” Derivatives Innovation in Product Diversification Strategy “ One wing ” the inaugural work, further enriching the product lineup, in “ Optimize, refine, and strengthen commodity futures. ” Based on the main platform, we have also implemented trading platforms for other derivatives such as commodity futures options and warehouse receipts. “ Two wings fly in tandem. ” The Shanghai Futures Exchange will, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and under the guidance of the spirit of the 19th National Congress, consistently uphold the fundamental orientation of financial services supporting the real economy, comprehensively strengthen its frontline regulatory responsibilities, guard against market risks, effectively protect the legitimate rights and interests of investors, and ensure the stable operation of the market.

　　More than 100 guests from Shanghai, relevant national ministries and commissions, the nonferrous metals industry association and enterprises, institutions under the China Securities Regulatory Commission, overseas exchanges, members of the Shanghai Futures Exchange, margin custody banks, market institutions, and news media attended the ceremony.

　　It is reported that, after the opening, the first batch of members and clients participating in the auction bidding were: 47 Home, 73 Among the institutional clients that participated in the auction and completed the first batch of transactions are Yunnan Copper Industry Co., Ltd., Tongling Nonferrous Metals Group Co., Ltd., Shenzhen Jiangtong Marketing Co., Ltd., and other entities and institutions.

　　The launch of copper options will provide a safeguard for real economy enterprises.

　　After the ceremony, Li Zhicong, Deputy General Manager of China Minmetals Nonferrous Metals Co., Ltd., told reporters in an interview that the launch of copper options contracts on the Shanghai Futures Exchange is of great significance for market risk management by real-sector enterprises. Not only does it enrich the toolkit available to these enterprises for managing market risks, but it also enables them to effectively manage price volatility risks and thereby elevate their overall market risk management capabilities. On the resource side of the nonferrous metals industry, the introduction of copper options allows mining companies to employ a combination of options and futures derivatives to achieve rolling, long-term price hedging. On the smelting and processing side, using options for hedging can reduce both capital costs and management expenses, enabling enterprises to focus more resources on core production activities such as cost reduction. On the trading side, companies can leverage options tools to adopt more flexible procurement and sales models, implement structured pricing for spot transactions, and thus better meet the diverse needs of upstream and downstream real-sector enterprises.

　　Wen Yue, Deputy Director of the Commerce Department at Tongling Nonferrous Metals Group, said in an interview with reporters that copper options are more complex derivatives whose underlying asset is futures contracts. Moreover, buying options and selling options carry vastly different levels of risk. Furthermore, various trading strategies can be derived from combinations of options and between options and futures. If companies in the industry wish to participate, they must first thoroughly understand and master the principles and characteristics of these instruments. They must also carefully design appropriate hedging or trading strategies, precisely identify the risk points associated with each strategy, and put in place robust risk-control measures. Therefore, in the long run, the introduction of copper options should greatly enhance the risk-management capabilities of China’s nonferrous metals industry. She pointed out that for real economy enterprises, the listing of copper options will bring three key benefits: first, it provides a more flexible tool for value preservation; second, it enables the development of a wider range of hedging or arbitrage strategies; and third, as mentioned earlier, it helps improve enterprises’ overall risk-management capabilities. From the perspective of exchanges and futures brokerage firms, launching and effectively operating such a sophisticated derivative product—ranging from contract research and design to post-listing investor education and service provision—will require even greater and more efficient interaction with real economy entities. This not only deepens their understanding of these enterprises but also allows them to gain a more profound insight into the specific challenges and needs these enterprises face in risk control. Thus, the launch of copper options holds positive significance for enhancing the futures market’s ability to serve the real economy.

　　Lu Ganping, General Manager of Jinrui Futures Co., Ltd., stated that the launch of copper options has enriched enterprises’ risk management tools and addressed some limitations inherent in traditional futures hedging methods. This can help companies along the copper industry chain more effectively hedge against risks. Compared to futures, which fully hedge price risks, combinations of futures and options—or even options and futures combinations—can meet copper enterprises’ hedging needs across multiple dimensions, including price volatility range, timing, and volatility itself, thereby providing physical enterprises with more diversified and sophisticated risk management tools.

　　Related links

　　9 Moon 21 Daily Copper Options Briefing

　　As of 3:00 PM (Excluding self-hedging):

　　( 1 ) Copper options trading volume 18079 Hand (single side, same below), trading volume 1.66 100 million yuan, holdings 5216 Hand. Among them, the trading volume of options accounts for the trading volume of the underlying futures. 7.24% The call-to-put trading ratio is 1.25。

　　( 2 ) Members who participated in options trading on that day 73 Home; Proportion of transaction volume from corporate clients 90.59% 。

　　( 3 ) The one with the highest trading volume 3 The series are: CU1901、CU1906 and CU1907 Series, with respective proportions of 82.11% 、 3.06% and 2.95% 。