Research On The Problems And Countermeasures Of China's Option Market Development

After the dissolution of the Bretton Woods system,the volatility of the world's financial markets began to increase.In order to cope with the increasingly volatile financial markets,various financial derivatives have emerged and developed rapidly.It is in this context that the options have regained their vitality.With the continuous development of the derivatives market,options have been favored by people for their risk management,hedging,arbitrage,and speculation,and have gradually developed into an important component of the financial derivatives market.Rapidly,its trading scale has surpassed the exchange futures for many years.Compared with future,options are more sophisticated investment tools.They can not only provide insurance functions,but also can effectively measure and manage market volatility risks.They are also the basic construction of multi-level capital markets.As China's multi-level capital market continues to improve,options have received more and more attention.In 2017,China officially launched sugar options and soybean meal options,which marked the official establishment of China's market commodity options market.Since China's option market has just started,it is urgently needed for scientific guidance.Therefore,it is imperative and necessary to strengthen the study of the development law of the option market.Options play a very unique role in serving the real economy,especially serving “agriculture,rural areas and farmers”.First of all,agricultural product options can boost the development of order agriculture.Take sugar options as an example.Order companies can use sugar options to improve their business model and buy in.Put options lock the lowest selling price,but retain the possibility that the price increase will be sold at a higher price.Second,options can also promote the healthy operation of "insurance + futures" projects,because options can provide the market with low-cost,high-efficiency hedging tools.In the United States,the volume of open options and the number of open positions all rank first in the world,and it is the first country to list options on exchanges.The Chicago Board Options Exchange(CBOE)was formally established in 1973.Since its establishment,the CBOE has begun to develop large-scale varieties of options to enrich on-the-ground options products.The options markets of major countries and regions in Europe and the United States were established relatively early,and their trading systems have matured,and the internationalization trend has become more apparent.The Asia-Pacific options market hasbeen more successful in South Korea and South Korea.The trading volume of options on the Korea Exchange,especially the trading volume of the KOSPI 200 stock index option,has been far ahead in the decade before 2011,but since 2012,its trading volume has fallen sharply.Having fallen below the previous growth rate,the ups and downs of KOSPI 200 stock index options are worthy of serious consideration by Chinese option builders.This article studies the status of global derivatives trading and the development of domestic and foreign options markets,especially the development of the US and Korean options markets.It focuses on the US S&P 500 Mini stock index options and South Korea KOSPI 200 stock index options.As for the wave of mergers and acquisitions of exchanges,this paper uses SWOT analysis to analyze and evaluate the causes and results of mergers,and analyzes the development path of exchanges from the perspective of corporate strategy.In addition,this article also uses case analysis methods to study the role of the US agricultural options market for U.S.agriculture.This article carefully sorts out the important value implications of China's option market and summarizes the current status of China's option market.The article describes in detail the options of China's Shanghai 50 ETF options,soybean meal options,Luzhou Futures' palm oil off-the-county options,and sugar options,and selects the palm oil off-the-counter option of soybean meal options and Luzhen Futures as examples to test their operation.The situation was carefully analyzed and its advantages and disadvantages were summed up,which played an important role in guiding the development of follow-on options products.Subsequently,this article discusses the exploration of the development path of China's option market and the development experience and lessons learned in recent years.The study finds that China's option market still has deficiencies in terms of transaction systems,market construction,and investor education.Then,through the study of the experience and lessons learned from the development of the U.S.and South Korea options markets,combined with the actual situation in China,we propose solutions and policy recommendations.Therefore,this article studies the issues related to the formation and development of the world's options market,and the operating experience of the developed option market to guide the construction of the country's option market and realize the healthy and rapid development of China's derivatives market.In the end,the author made a summary on the basis of the full text.