BOFX, the exchange that brings together participants from the physical industry and the financial community to create a robust and regulated market where there is always a buyer and a seller today announced that as of last week, the Commodity Index Futures had run for three months and seen three smooth deliveries. According to several indicators, the Commodity index market has been running in an efficient manner with good price discovery. However, the market needs deepening owing to weak risk management.
The Commodity Index Futures outperform most overseas Commodity index futures markets in their initial stages in terms of liquidity, basis and risk control, three basic indicators to measure market operation efficiency.
Firstly, good market liquidity. According to the transaction data, the Commodity index futures assumed a steady growth in their average daily trading volume. And most deals were made through continuous auctions at the smallest tick size so that there were “almost no unwanted calls”. “Commodity index futures have big spreads at their initial listing on most capital markets,” said Chong Leung, Chief Trading Director of BOFX “The desolate scene of occasional transactions and volatile fluctuation in Commodity index futures prices are more common.”
Secondly, reasonable Commodity index prices. The basis, namely, the price difference not only determines the cost for and effectiveness of Commodity investors' risk management by the Commodity index futures but also reflects investors' rationality. Smaller basis means less cost for rick management and more efficiency. The basis on a mature market is around 1%.
Thirdly, effective risk-control. The Commodity Index Futures have experienced three smooth deliveries without being affected by the "expiration effect".

[b]About Beijing Options and Futures Exchange (BOFX)[/b]
BOFX brings together participants from the physical industry and the financial community to create a robust and regulated market where there is always a buyer and a seller, where there is always a price and where there is always the opportunity to transfer or take on risk – 24 hours a day. Investors value the BOFX as a vibrant futures, options and commodity exchange but also for its close links to industry. The Exchange provides producers and consumers from all industries with a physical market of last resort and, most importantly of all, with the ability to hedge against the risk of rising and falling world commodities prices.

[b]www.bofx.org[/b]