The Zhejiang Oil Center of the Shanghai Futures Exchange launched a new pilot program of "Futures Price Stabilization Order"

　　On June 16, the Shanghai Futures Exchange (hereinafter referred to as the Shanghai Futures Exchange) announced that it will carry out business cooperation with Zhejiang International Oil and Gas Trading Center Co.
, Ltd.
Expand the "futures price stabilization order" to petroleum asphalt, low-sulfur fuel oil and other energy and chemical varieties
.

　　According to reports, in this pilot, the enterprise signed a production capacity pre-sale order at the Zhejiang Oil Center, and purchased option products that meet its own risk management needs from the futures risk management subsidiary through the Zhejiang Oil Center, and the futures risk management subsidiary used the futures market to carry out Hedging operations can reduce the price fluctuations of raw material purchases or sales, so as to achieve the effect of "stabilizing prices" in the production and operation of enterprises, and then contribute to "guaranteeing supply"
.

　　The person in charge of the relevant department of the Shanghai Futures Exchange said that a certain percentage of the cost of purchasing options will be supported by companies, and companies will be encouraged and guided to use derivatives tools to manage their own price risks
.

　　At the same time, the person in charge pointed out that the expansion of "futures price stabilization orders" to petroleum asphalt, low-sulfur fuel oil and other energy and chemical varieties is to do a good job in "guaranteeing supply and stable prices", and implementing the CSRC's "playing futures' hedging function to help Practical innovation required for enterprise risk management in areas and industries severely affected by the epidemic
.

　　Chen Rong, chairman of Zhejiang Oil Center, said that the pilot business of "Stable Futures Orders" is an important step taken by Shanghai Futures Exchange and Zhejiang Oil Center on the road of building a positive interactive ecosystem
.
Shanghai Futures Exchange provides options tools to reduce the risk of price fluctuations.
Zhejiang Oil Center acts as a spot platform to ensure supply for the market through pre-sale of production capacity, and futures companies provide option services for market participants
.
The futures market will make efforts on both sides, using financial tools to serve real enterprises and achieve "guaranteed supply and stable prices"
.