China Financial Futures Exchange (CFFEX) will launch a simulated trading of stock index options on Nov 8, the exchange said in a statement on Tuesday.

Stock index options are mature derivatives in the global financial market, and it is also one of the new products that will be launched at CFFEX, the statement said.

Analysts said investors in China's stock market had increasing demands for stock index options trading in order to hedge risks, and listing stock index options may help the improvement of market efficiency and add to investors risk-management tools.

Simulation trading is also an important step in preparation for listing stock index options, and will provide first-hand experience for developers and investors.