BEIJING, Jan. 18 (Xinhua) -- China Financial Futures Exchange (CFFEX) on Thursday officially launched the exchanges of futures for physicals (EFPs) for treasury bond futures, representing an important step in the reform and innovation of China's financial futures market.
The EFP refers to the transaction behavior of both parties agreeing to synchronously buy (sell) futures contracts of the bourse and sell (buy) securities or other related contracts of the bourse.
The EFP transaction is a complement to the centralized transaction method. It also enriches the trading mechanism, reduces the execution cost of trading strategies, and better meets the refined risk management needs of investors.
Qi Zhiping, general manager of CFFEX, said that the bourse will intensify innovation and development, improve trading mechanisms, cultivate institutional investors, and promote the treasury bond futures market to better serve the high-quality development of the real economy.
According to the implementation rules of the EFPs for treasury bond futures, once the banks get the qualification, they can also participate in the EFPs for treasury bond futures.
The first EFP transaction for treasury bond futures were concluded between two institutions in Beijing and Shenzhen at 9:15 on Thursday, with a volume of 50 lots. (Edited by Hu Pingchao, hupingchao@xinhua.org)
A single purchase
