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Straits Financial is among the first batch to trade DCE RBD Palm Olein Options for our client CCFT.

Jun 18, 2021

Straits Financial Services Pte Ltd (“Straits Financial”) is among the first batch to successfully conclude the first trade of the RBD Palm Olein Options on Dalian Commodity Exchange (“DCE”), which is the first options contract from Chinese-based exchanges that opened to foreign participants. The trade was carried out on behalf of China Commercial Foreign Trade (Singapore) Pte. Ltd. (“CCFT”), through Xinhu Futures Co., Ltd (“Xinhu Futures”).

The RBD palm olein options and other DCE listed options are adapting the same set of rules, and have the same design concept. The introduction of palm oil options to international traders adopts methods consistent with the existing products in terms of trading, settlement, and risk management. The core technology systems will not change, and international traders can use RMB, standard warrants, treasury bonds and foreign exchange funds as margin. The listing of palm olein options and the introduction of international traders sets a precedence for China's options market to grow and better serve the global industrial chain in time to come.

CCFT (Singapore) specializes in the import and export business of agricultural products from Southeast Asia, the European Union, the Black Sea, America and Australia, focusing on bulk trades of palm oil, sunflower oil, non-GMO soybean oil, GMO vegetable oil and refined sugar, with a focus on export trading to China. CCFT (Singapore) is among the first batch to trade the RBD Palm Olein Futures when it was opened to international participants. “The listing of palm olein options contract can form a synergy with the futures contract, providing our company with more risk management methods and strategies and stabilizing our daily production and operation. It will help to promote further development of the options trading model in the oil industry, allowing oil companies to gain new profit points and trading opportunities on top of the previous “one time offer trade” and “basis trading” model,” said Zhang Yang, Managing Director of CCFT (Singapore).

Straits Financial is one of the overseas intermediaries for internationalized futures products. With the support of Xinhu Futures, it has previously secured many first trades of the internationalized products upon launch, including the crude oil futures, iron ore futures, TSR 20 futures, low sulfur fuel oil futures, copper futures and palm olein futures.

“Internationalization of the DCE palm olein options will open China’s palm oil markets and lead to a deeper integration of global markets. With the further opening of China’s market, we look forward to serving international firms with a more diverse product offering in the near future,” said Roger Quek, Managing Director of Straits Financial.

“We are very pleased to see an accelerated internationalization of China's futures and options markets. Our cooperation with Straits Financial has been synergistec. We have repeatedly achieved good results within the internationalized products, and our future cooperation will only be even closer. On the basis of internationalized palm olein futures, the introduction of palm olein options to international traders will play an increasingly important role in discovering medium and long-term prices, helping companies to avoid price fluctuations risks, and promoting the sustainable development of the palm olein industry in China and globally. Xinhu Futures will continue to strive for excellence, keeping a foothold in China and serving the world,” said Yang Xidong, General Manager of Xinhu Futures.