MarketsMuse update courtesy of AsiaAsset News

The Shanghai Stock Exchange (SSE) will unveil its first ETF option next month as a testing ground for the pilot stock option trading program in China.

The China Securities Regulatory Commission (CSRC) said it has authorized the SSE to launch the pilot program with an option based on the SSE 50 Index ETF as the debut product. It will land on the bourse on February 9. The index in question tracks the 50 largest and most representative stocks listed in Shanghai.

The Mainland’s securities watchdog said in a statement that stock options comprise of options based on individual equities and ETFs linked to share indices. “Individual stock options and ETF options are important types of options in international capital markets. They have a role to play in risk management which cannot be replaced by other financial vehicles,” the CSRC said. It added that turnover in options has reached a level similar to that in futures in recent years in terms of trade conducted on global exchanges, signaling a large demand for these products. Continue reading →