The Shanghai Stock Exchange (SSE) will attempt to perfect the operations of SSE 50 ETF options, according to Gui Minjie, member of the CPPCC National Committee and SSE chairman of governors.
He was speaking to a press conference for deputies to the National People’s congress and members of the CPPCC National Committee of the securities regulatory commission.
He said that said the general operation of the SSE 50 ETF option had met expectations, but acknowledged the stagnant trading and inactive account opening of the product.
He thought that the current pricing of the SSE 50 ETF option contract was reasonable, and that market makers were playing the correct roles in guiding quotations and offering market liquidity.
He said the SSE will further improve the margin mechanisms for ETF options, including the securities used as margin, in order to lower the cost of using options to hedge risks.
The SSE will further expand the scope of the underlyings of ETF options, and launch single stock options and provide more flexible terms, such as American options, weekly options and long-term options.