Following the suspension of over-the-counter options futures management products for the record, the regulatory department will take a heavy blow: in April 10, 2018, the Securities Association innovation department informed the brokerage, suspended securities dealers and private equity fund to carry out over-the-counter derivatives business since April 11, 2018, the securities company may not add business scale, the stock business expired automatically terminate, no renewal .
But we need to pay attention to this window guidance as a temporary measure. After the new regulations come out, we will carry out according to the new regulation standard, but the new regulation is not yet clear.
In fact, this is not the first time that regulators have been watching the options. As early as last September, the mid-term Association issued a notice that Risk Management Inc must not conduct derivatives trading services with natural customers.
And this time the broker and private equity fund to carry out OTC derivatives business, in some industry, it seems to be to completely block the potential "gray zone" of individual participation in the field derivatives, further standardizing the OTC derivatives market.
Where is the over-the-counter bull?
The off court option is relative to the field option, which refers to the transaction of non standardized financial option contracts in a non centralized trading place. The difference between off court options and field options can be seen from the following table. 20180412115544.jpg The biggest advantage of off site options is that they don't have to be confined to the field options. What advantages can they bring?
A distribution agency offering OTC options Advertises:
The lever can be up to 10-30 times, margin trading, no default risk.
Normally, we buy a 600516, if we buy 10 thousand shares at 10 yuan, we will invest 100 thousand yuan. The stock price rose to 30 yuan, and we made a total profit of 200 thousand yuan, with a yield of 200%.
In the case of over-the-counter options: if 100 thousand yuan is invested in the position of 10 yuan, the purchase of the call option is equivalent to holding a value of 600516 of the market value of 2 million, if then the stock price rises to 30 yuan. The total profit is 4 million yuan. The investment rate of 100 thousand is 4000%.
In this case, the stock market value of the stock option is equivalent to 20 times the direct purchase of the stock, that is, 20 times the leverage, and the OTC option is like a futures margin trading, but there is no futures like stock risk, and the redemption is flexible. There will be a right day to exercise, rather than waiting for the expiration date.
Body and individual investors are robbing "fat meat" 20180412115553.jpg How can it not be so exciting? Since 2017, the out-the-counter options market in China has seen an explosive growth, especially the over-the-counter stock options ushered in rapid development. The data show that the proportion of new OTC options account for the new nominal capital, from less than 1% in December 2016 to 38% in October 2017.
The private fund's preference for OTC options is crazy. From the rivals of the new OTC options in 2017, private funds occupy the first place, whether in nominal or contract numbers.
Why? Because private wants to add leverage!
Since November 2015, the Securities Regulatory Commission issued the "notice on the related work of private private management products that are suspected to be allocated to the securities operating institutions", the path of private equity through the exchange of income and leverage is basically blocked.
20180412115601.jpg Therefore, some private businesses turn to stock options plus leverage. According to the option premium rate of 8% to 15%, the lever of stock option can be put to 12.5 times or even higher. So, said a senior non bank researcher of a medium-sized brokerage in Central China.
So to make money, individual investors look so envious! But how can the off-site option be allowed to participate in individual investors?
In the industry, there are some ways to avoid supervision, such as individual investors and some qualified institutions to sign "entrustment" type of investment agreements, institutions as the channel, and brokerage trading on the basis of OTC options. It is through subscription of customized products, products as a channel, so as to achieve the purpose of transaction.
The sudden notice of the regulatory layer is intended to completely cut off individual participation in the trading of the OTC derivatives, which will not only prevent the large shareholders from over-the-counter options, but also eliminate OTC options as a number of leveraged tools.
After all, the original intention of the option is to provide a hedge for investors. If this tool is reduced to the sickle of leek, it is necessary and necessary for the regulator to start doing it!