Zhengzhou Commodity Exchange

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Zhengzhou Commodity Exchange
Zhengzhou logo.jpg
Founded 1990
Headquarters Zhengzhou, PRC
Key People Chen Huaping, Chairman, Zhao Zhengping, general manager
Products Futures in wheat, sugar, cotton, rape seed and PTA
Website http://english.czce.com.cn/

The Zhengzhou Commodity Exchange (ZCE) is the third largest of China’s three futures exchanges in contract volume, behind the Dalian Commodity Exchange and the Shanghai Futures Exchange.

It lists futures contracts in wheat, cotton, white sugar, rapeseed oil, rice, apples and non-agriculture contracts on flat glass, methanol, ferrosilicon, silicon manganese, pure terephthalic acid (PTA) and thermal coal, plus options contracts on white sugar and cotton.[1][2]

At the end of 2017, ZCE has 164 members, spreading over 26 provinces (municipalities) and autonomous regions, including 149 futures firm members accounting for 91% of all members and 15 non-futures firm members accounting for 9% of all members.

The Zhengzhou Commodity Exchange ranked as the world's 13th largest derivatives exchange in 2018, with volume of 817,969,982 in trading volume, up 39 percent from the previous year.[3]

History

The ZCE was established on Oct. 12, 1990, in Zhengzhou, the capital of Henan province in east-central China, the country’s most populous region. After operating a cash forward contract for two years, the first futures - in wheat, corn, soybean, green beans and sesame - were launched on May 28, 1993.[4]

The exchange emerged from the restructuring of China’s futures industry in 1990 after a 60-year hiatus. The government closed many of the 40-plus exchanges which emerged because of widespread price manipulation.

Contracts in peanut kernel, soybean meal and red beans wee added in January 1994, with Treasury notes added later in the year. Soybean, red bean and aluminum contracts were delisted in 1996, with Treasury notes also dropped after the government banned financial futures and Treasury notes, though plans emerged in 1996 to list stock index products on a new exchange.

In August 1998 the 15 remaining exchanges were reduced to three, with the exchange – renamed as the Zhengzhou Commodity Exchange – listing wheat, green bean, red bean and peanut kernel alongside the Dalian Commodity Exchange and the Shanghai Futures Exchange, which listed metals and rubber.

The ZCE’s clearing went electronic in 1997, and the three exchanges were linked with a single electronic network in 2001.

Structure and Regulation

The exchange is a non-profit, self-regulated entity, overseen by the China Securities Regulatory Commission, with 226 member firms (including 180 brokers).

Products

Agricultural Contracts

Cotton No.1 Japonica Rice Late Rice Rapeseed Oil Wheat PM Wheat WH Early Rice Rapeseed Meal Rapeseed White Sugar Cotton Yarn Apple

Non-Agricultural Contracts

Flat Glass Methanol(MA) Ferrosilicon Silicon Manganese PTA Thermal Coal(ZC)

Options Sugar Cotton

Contract Volume

Year Total Annual Volume* Percent Change
2018 817,969,982 39.5%
2017 586,070,148 (-)35.0%
2016 901,297,04 (-) 15.8%
2015 1,070,335,606 58.3%
2014 676,343,283 28.8%
2013 525,299,023 51.3%
2012 347,091,533 (-) 14.6%
2011 406,390,664 (-) 18.1%
2010 495,904,984 118.4%
2009 227,112,521 --

Key People

References

  1. China Futures Take Dragon Steps. Futures Industry Magazine.
  2. Overview. ZCE.
  3. 2018 Annual Volume Survey. Futures Industry.org.
  4. Zhengzhou Commodity Exchange Official History. ZCE.