Research On The Business Model Of Commodity Risk Management In China

Futures risk management subsidiary,an emerging business form,was officially launched in 2013.From the initial cooperative hedging and basis trading to the present warehouse receipt service,basis trading,cooperative hedging,OTC derivatives and market making,the futures risk subsidiary has witnessed a full bloom of business scale.At present,there are a total of 85 futures risk management subsidiaries in the whole market,with a total asset scale of 50 billion yuan.With the development of futures risk management companies,the futures industry has gradually changed from a broker-like channel business to a commodity risk management trader and service provider.Warehouse receipts services and basis trade make futures and spot more closely linked;Cooperative hedging allows futures companies to better play the value of futures variety research ability;OTC derivatives business makes the tools of risk management in the futures industry more diversified and puts forward higher requirements on the professionalism of personnel in the futures industry.Market-making provides a good support for liquidity in futures exchanges.Therefore,the futures risk management subsidiary,as a dark horse in the futures industry,has become an important grasp for the futures parent company to serve the real economy and an important profit growth point.However,with more and more futures companies filing for the establishment of futures risk management subsidiaries,the market competition is more and more intense.Many risk management subsidiaries are willing to take high risks in order to compete for customers or obtain extra income.It leads to the frequent occurrence of recent risk events and fully exposes the lack of risk management ability in the futures risk management subsidiary.The writing of this thesis,first of all,from the commodity risk management analysis for the market demand of the business,from commodity spot operation risk,liquidity risk,market price risk,risk of listed companies,and other point of view to analyze the current market demand,and through to the current futures and other derivatives market size and spot trading companies face the difference between the price risk exposure,predict the future risk management companies face a broad market space.Then,to analyze the present condition of the futures company’s business risk management,the current warehouse service,hedge basis of trade,cooperation,OTC derivatives,the market-making business situation are expounded,and taking an example of the south China capital on its core business operations and risk analysis,and puts forward the current risk management company in the operation of the current existing problems and the insufficiency.Third,in order to better look forward to the future development path of China’s futures risk management companies,this paper selects glencore,the world’s top commodity trader,as the case to analyze its successful experience in spot and derivatives business and provide reference for the development of futures risk management companies.Finally,on the basis of the above analysis,combined with the current development status of the industry and the successful experience of top international enterprises,proposed to build a new model of new commodity risk management business.First,we should vigorously develop OTC derivatives business and give full play to the flexibility of OTC business to meet the personalized risk management needs of enterprises.On the one hand,the forward,swap,option and other instruments in OTC derivatives are combined.On the other hand,give full play to the core advantages of OTC derivatives credit trading,apply the credit line of counterparties to the trading,and improve the trading efficiency.In addition,while enriching the OTC derivatives trading pattern and improving the trading flexibility,it is also necessary to improve the risk control level of the business and the counterparty.Second,in terms of spot business,we should refer to the successful case experience of glencore,actively expand the development strategy of the whole industrial chain,and better provide competitive services and risk control ability through the integration of the industrial chain.Third,the combination of spot business and risk derivatives business provides integrated risk management solutions for customers and the market.Risk management companies as commodity traders through participation in the over-the-counter and OTC markets comprehensive derivatives business,at the same time have rich spot industry resources.Through the use of derivatives to provide personalized pricing and settlement services for purchase and sale,and through the warehousing and logistics facilities to provide spot delivery guarantee services,finally through the combination of warehousing and derivatives can reduce the warehouse or spot financing risk,improve the financing efficiency.In addition,in order to better promote the development of futures risk management industry,some Suggestions on the construction of supporting facilities are also put forward.For example,we should improve the governance structure and internal control system of futures risk management companies,improve the business license management and supervision system,and vigorously build the OTC business infrastructure.