DCE PVC futures introduce group delivery

　　Sinochem News On June 10, Dalian Commodity Exchange issued an announcement on revising the detailed rules of polyvinyl chloride (PVC) futures business and soliciting delivery warehouses from PVC Group
.
From now on, DCE will introduce group delivery business for PVC varieties, and openly solicit qualified group delivery warehouses and their sub-warehouses
.

　　According to the announcement, there are two main aspects to the revision of the business rules: First, the headquarters of a warehousing enterprise group can apply to become the headquarters of the group's delivery warehouse, and the headquarters can set up multiple warehousing companies with holding, equity participation or cooperative relationships as the group's delivery warehouse sub-warehouse; It is to clarify the rights and obligations of the headquarters and its sub-warehouses.
The headquarters shall undertake the relevant rights and obligations of issuing standard warehouse receipts by itself and its sub-warehouses.
The branch warehouses can issue standard warehouse receipts after authorization from the headquarters, and the headquarters needs to report to the exchange.
Provide a bank performance guarantee letter or other guarantee methods recognized by the exchange, and the delivery business of the sub-warehouse can refer to the relevant regulations of PVC warehouse receipts
.

　　It is understood that the group delivery business refers to the management of delivery warehouses in a group manner, the establishment of a tiered delivery risk assumption mechanism based on the group's corporate credit, and the delivery business method of physical warehouse receipts
.
In December 2015, DCE introduced the group delivery business innovatively for the first time in corn varieties
.
Hog futures listed in January 2021 also adopt group delivery
.
Collective delivery business has many advantages in strengthening delivery business management and improving delivery convenience
.

　　First of all, the relevant large warehousing enterprise group has the characteristics of a large number of warehousing enterprises, sufficient storage capacity, good qualifications, and standardized management.
After the headquarters of the warehousing enterprise group applies to become the headquarters of the group's delivery warehouse, it can batch the applications of its qualified warehousing enterprises as sub-groups.
The warehouse is conducive to rapidly expanding the delivery warehouse capacity and the radiation scope of the delivery business, facilitating the delivery of industrial enterprises, and improving the approval efficiency of the delivery warehouse
.

　　Secondly, as the direct counterpart of the exchange's delivery warehouse management, the group's delivery warehouse headquarters has daily supervision and management responsibilities for its sub-warehouses, which can improve the overall management level of the futures delivery warehouse and better prevent delivery risks
.

　　Finally, qualified group delivery warehouses can provide customers with services such as agreement delivery among their sub-warehouses to meet the individual needs of physical enterprises
.

　　The relevant person in charge of DCE said that since the listing of PVC futures in 2009, the market has maintained stable operation and effective function, and industrial chain enterprises have actively used futures tools to manage risks, and the market scale has continued to expand
.
In 2021, the trading volume and average daily open interest of PVC futures will be 177 million lots and 580,600 lots, respectively, an increase of 203% and 116% over the previous year
.
In the first five months of this year, the trading volume and average daily open interest of PVC futures were 94.
6284 million lots and 693,900 lots, up 87% and 48% year-on-year respectively
.

　　The PVC futures formally introduced the group delivery business.
After sufficient market research and multiple rounds of demonstrations, the market generally believes that PVC varieties have the industrial foundation for the implementation of the group delivery business.
After the implementation, it will help increase the available storage capacity for futures delivery and expand the delivery business.
The radiation scope meets the needs of enterprises in the industrial chain outside the existing delivery area to participate in the delivery
.