Among them, the net income of 5 securities companies exceeded 1 billion yuan
At present, the competition in the options business outside the securities market has gradually intensified, and the list of dealers has continued to expand to 46. Facing the new track, while the leading securities companies are developing steadily, some small and medium-sized securities companies are also catching up.
According to the 2021 ranking of securities companies’ operating performance released by the China Securities Association, the top 20 securities companies (hereinafter referred to as “TOP20 securities companies” based on the revenue from counter-party transactions between counters and institutional clients (which can be regarded as the net revenue of OTC options business) ”) In 2021, the net income of the OTC options business will total 11.2 billion yuan.It is worth noting that the indicator of Guolian Securities has increased by more than 5800% year-on-year, which is very impressive.
Specifically, among the TOP20 securities companies, the net income of five securities companies including CITIC Securities, Shenwan Hongyuan, Huatai Securities, CICC, and Haitong Securities all exceeded 1 billion yuan.Industrial Securities, Tianfeng Securities, and Ping An Securities are the new securities companies entering the list in 2021, showing that the competition among securities companies around the OTC options business has intensified.
In terms of year-on-year growth rate, the net income of the options business outside the eight securities markets increased by more than 200% year-on-year.Among them, Guolian Securities achieved an astonishing increase of 5802.73%; China Galaxy followed closely with 1947.78%; Zheshang Securities and GF Securities also increased by 608.33% and 557.19% respectively.
Taking Guolian Securities, which has achieved a surge in revenue, as an example, its OTC derivatives business will continue to develop and innovate in 2021, with a rapid growth in transaction volume, basically achieving full coverage of the market’s mainstream business varieties and transaction structure, and accumulatively signed OTC options throughout the year. And the nominal principal of income swaps increased by 241% year-on-year.
In this regard, the team of Zheng Jisha, chief analyst of the non-banking financial industry of China Merchants Securities, said, "In terms of market participation, in addition to the existing eight primary dealers, Guolian Securities is the most active and active derivative in the capital market. Traders. However, due to the current company classification and regulatory rating of BB, it is temporarily unable to apply for primary dealer qualification, so it is difficult to achieve a better level of profitability in individual stock options trading. If the company has the opportunity to obtain primary dealer qualification in the future, business The ceiling will open further."
In recent years, the derivatives business outside the securities market has developed rapidly.According to data from the China Securities Association, as of the end of 2021, the initial nominal principal size of the OTC derivatives market was 2,016.717 billion yuan, with a cumulative increase of 8,403.801 billion yuan throughout the year, a year-on-year increase of 76.56%.The over-the-counter derivatives business mainly includes income swaps and over-the-counter options. Among them, the nominal principal size of the stock of income swaps is 1,026.067 billion yuan, and the cumulative increase in the whole year is 4,772.735 billion yuan, a year-on-year increase of 121.46%; The scale of the principal amounted to 990.65 billion yuan, with a cumulative increase of 3,631.066 billion yuan throughout the year, a year-on-year increase of 39.41%.
Judging from the latest list of OTC options dealers, there are only 8 primary dealers, all of which are top brokers; there are 38 secondary dealers in total.Under the neutral assumption, Haitong International estimates that the total revenue of equity derivatives business outside the securities market in 2022 and 2023 will be 30.3 billion yuan and 34.8 billion yuan respectively, and will reach 82.1 billion yuan by 2032.
Xia Changsheng, head of the Finance and Fintech Group of Tianfeng Securities, said, "The main counterparties of the derivatives business outside the securities market are private equity and commercial banks. Compared with overseas, the degree of institutionalization of domestic equity investment is still low, and the OTC derivatives market There is a lot of room for development.”
KPMG suggested that for OTC derivatives business, securities companies must pay attention to investor suitability, transaction targets, transaction process, risk limits, valuation management, etc. Conduct an overall review of business risks, and truly "see, explain, and manage" the derivatives business.
