As the "crude oil treasure" huge loss event of Bank of China ferments, the dispute on the nature of its business also arises. Chang Qing, a professor at the school of economics and management of China Agricultural University and one of the founders of China's futures market, told China Securities News on Tuesday that crude oil treasure is more like a fool like futures transaction in terms of product design. This is a wake-up call for the domestic futures market, which should adapt to the needs of ordinary investors and enrich targeted professional product services.
Fool futures trading
"After the crude oil treasure incident came out, many people who didn't know the inside story talked more about the color change of futures. In fact, it's just that BOC's futures risk control is poor, and the futures instruments themselves should not carry the pot." A futures person told China Securities News that the regulatory attitude towards the innovation of futures financial products has always been cautious. Although futures companies have professional capabilities and resources, they are not qualified to do such businesses.
"Crude oil treasure is a two-way trading mechanism, which can be bought or sold. As a bank, Bank of China has no exchange function. Therefore, a large number of transactions made by buying investors and selling investors will be packaged by Bank of China, and the net risk position will be taken to overseas exchanges." Mr. y, an investor, told China Securities News. For example, if the long side buys 100000 crude oil treasures and the short side is 30000, it will generate 70000 long net positions. BoC will open equivalent crude oil futures on CME exchange to hedge its own unilateral risk.
Two way trading, t + 0, linked futures products and settled according to the futures price, margin trading, it sounds like a product similar to futures instruments. "It is only used for spot (delivery monthly contract), but actually delivery month is still one month of Futures (delivery monthly contract). The bank actually collects the money of retail investors to do futures abroad. " Chang Qing told China Securities News that crude oil treasure is more like a fool like futures transaction, which will not cause any problems under normal circumstances, but can not stand the test of extreme market such as negative oil price.
Future product innovation to be improved
"After being linked, you can't move your position at will. It's also the result of this stupid trading method." Chang Qing thought that this also raised a wake-up call to the domestic futures market from the side. "The domestic futures market has no flexible tools for investors to provide, and the majority of retail investors want to share the benefits of price changes, but there is no reliable tool."
As for the crude oil treasure incident, a person engaged in futures investor education told China Securities News, "we do investor education. We talk to investors all day about the risks in the market and the need to be cautious in investment. Many people take it for granted. Loss of money, on the other hand, is the best risk education. It's not empty talk if you don't know how to do it. "
Changqing said that from the perspective of regulatory concept, maybe it is time for the futures market to adjust its guiding concept and improve its services to speculative customers. This part of liquidity can not only strengthen and thicken the domestic futures market, but also help to solve the problem of liquidity shortage faced by large-scale entity enterprises.
"The fact that domestic investors want to go to the overseas market to copy the bottom of crude oil, to a certain extent, shows that the pricing power has been sidelined and highlights the importance of China's futures market becoming bigger and stronger." One industry person said.
It is understood that the No. 1 central document published in recent years has continued to mention "insurance + futures", which affirmed the positive role of futures market in dealing with the risk of fluctuations in agricultural products prices. It is the realistic need of the development of real economy to make the futures market bigger and stronger. There are 1:2 futures priority funds to invest in private fund products through trust channels