The Applying Of Commodity Price Swaps In China

The risk of Commodity price is a universal in daily life; many tools are used to control this risk, such as commodity futures, commodity options and so on. However, they are not flexible, as well as having the problem of too short duration. Commodity price swaps have been widely used in the foreign countries as it's flexible.This paper first systematically introduces the principle of the commodity price swaps and its function. Then we compare it with other derivatives so as to know their characteristics in common. Then we discussed about the methods of pricing commodity price swaps in two different situations.Then we describe the current situation of global commodity price swaps market, including the amount of transactions, the way of trading etc. Then the paper analyzes the necessity and feasibility of carrying out the commodity price swaps in china. And choose copper commodity price swap as a pilot product, and then price this product and forecast market scale.Finally, the paper studies the regulation of commodity price swaps in the United States and Japan, including the development path and the characteristics. Then give some suggestions to our country.