New Mechanism! Zheng Merchants Exchange Launched The Selection Of Cotton Yarn Futures Market Makers To Improve The Overall Activity

On May 9, Zhengzhou Commodity Exchange issued a notice to select cotton yarn futures market makers through the firm offer competition.


Cotton yarn futures was listed in Zhengzhou Stock Exchange in 2017, which has attracted extensive attention in the industry since its listing. At present, the cotton yarn futures market is relatively stable and has great development potential. As a raw material variety of cotton yarn, the cotton futures market is now significantly more active. In this context, the market places high hopes on cotton yarn futures.


In order to further enhance the overall activity of cotton yarn futures, Zheng Merchants Institute will introduce the market maker mechanism into the newly revised contract of cotton yarn futures, drawing on the successful experience of the market maker system in improving the liquidity of futures contracts in recent months. It is initially considered that the market maker will provide bilateral quotations for contracts 1, 5 and 9, and then gradually activate other contracts.


It is understood that the cotton yarn futures market maker's firm offer selection contest will be held from the evening of May 15, 2019 to July 31, 2019. The selection object is the institutions that have completed the quotation obligation in the first week of the methanol firm offer selection contest. During the contest, they need to provide continuous quotation for the cotton yarn 2001 contract through bilateral quotation instructions.


Industry analysts believe that the introduction of market makers in cotton yarn futures is conducive to the better development of cotton yarn futures. At the same time, due to the high correlation between cotton futures and cotton yarn futures, market makers can also hedge market making risks through cotton futures and options, which is also conducive to improving the overall activity of cotton related derivatives system and further playing the role of relevant futures varieties in serving the real economy. ? ? ? ? ? ?