With the courage and creativity of a young entrepreneur, Dongsheng Yan initiated the design of the modern spot transaction system, based on which the world’s first spot exchange center—Bohai Commodity Exchange—was launched. Within four years, BOCE had 60 listed commodities, more than 100 signed commodities waiting to be listed, and huge daily trading volume, exceeding 20 billion RMB.
Yan created the new model of spot transaction, which changed the 200-year tradition of commodity exchange all over the world of only dealing in futures. He has been hailed as the “father of modern Chinese spot.” Yan built four nationwide market service systems, namely market service, capital settlement, warehousing and logistics, and information release, which became the largest new sort of modern spot market and shaped the Chinese staple commodities’ spot price, featuring openness, fairness, and impartiality.
Bohai Commodity Exchange is the world’s first, as well as China’s largest, comprehensive spot exchange center. As of the end of October 2013, BOCE held 67 listed commodities covering four aspects, namely metal products, coal and energy, petrochemical, and agricultural and forest products. BOCE also has had about 200 authorized service agencies and nearly 1,000 business offices with the capability of offering nationwide market support network.
By establishing BEST (Bohai Exchange Spot Trading) and three supportive systems, the spot trading system, the additional intermediate bin settlement system, and the deferred settlement compensation system, BOCE combined an e-business platform with exchanges to build an online bulk commodities trading platform. In this way, BOCE managed to provide comprehensive service to the production, consumption, and operation of physical trade through its nationwide market service network, funds settlement network, storage and logistics network, and information network. Thus far, BOCE has grown into China’s largest trading, clearing, and pricing center of bulk commodities.