Anybody wants to trade the to-be-listed crude oil futures in China ?

Discussion in 'Commodity Futures' started by lx008, Jul 12, 2017.

  1. lx008

    lx008

    https://www.reuters.com/article/us-china-oil-idUSKBN19W0N5
    "

    China has opened more than 6,000 trading accounts for its long-awaited crude futures contract - with three-quarters coming from individual traders - as it pushes ahead with plans to compete with global pricing benchmarks.

    China's oil majors and about 150 brokerages have also registered, but the strong interest by 'mom-and-pop' investors looks set to mark out China's crude futures from western counterparts, which are dominated by institutional investors.

    Shanghai International Energy Exchange (INE), which will run China's contract, says it is finalizing technical issues. The contract has faced years of delays and there is still no set date, but INE and also trading participants now say a launch this year is almost certain.

    "The INE is striving to launch the crude oil futures within this year," a spokeswoman said, adding that the exchange has conducted four trials to ensure it is technically ready.

    "
     
  2. MattZ

    MattZ Sponsor

    I doubt they can get to the CME and ICE level in liquidity when they launch.
     
    Last edited: Jul 12, 2017
    murray t turtle likes this.
  3. sle

    sle

    Is it going to be CNY denominated? What flavor will it be linked to?

     
  4. Well China Petroleum + Chemical [SNP ]is rated better than SNAP; so low volume could trump SNAP. WTI may still be king...............................................................
     
    MattZ likes this.
  5. Overnight

    Overnight

    Wouldn't trust the INE with a 39 1/2 foot pole! (X-Mas is coming!)
     
    murray t turtle likes this.
  6. %%
    It could work real well, if they let the NYSE or CME run it.Their hog contract$ could work better, since some people like non kosher hogs.IBD has rated BIDU well / wise, havent looked @ it it the last 5 minutes. I read a Bloomberg news note, sounds like they may need to fix all the mini contracts/ retail.
     
  7. Overnight

    Overnight

    I don't see how a US exchange could "run" the INE. I be sticking with the WTI on NyMex. If and when China starts trading their product on the market, we'll take heed. But what kind of future will they be offering? Light sweet or heavy sour, or something in between?
     
    murray t turtle likes this.
  8. lx008

    lx008

    Medium Sour Crude Oil

    you can see it here


    http://www.ine.cn/en/products/oil/standard/index_2.html


    Product
    Medium Sour Crude Oil
    Contract Size
    1000 barrels per lot
    Price Quotation
    (RMB) Yuan per barrel
    (no tax or duty included in the quotation)
    Minimum Price Fluctuation
    0.1 Yuan / barrel
    Daily Price Limits
    ±4% from the settlement price of the previous trading day
    Listed Contracts
    Monthly contracts of recent twelve (12) consecutive months followed by eight (8) quarterly contracts.
    Trading Hours
    9:00-11:30 a.m., 1:30-3:00 p.m. (the Beijing Time), and other trading hours as prescribed by the Exchange
    Last Trading Day
    The last trading day of the month prior to the delivery month; The Shanghai International Energy Exchange is entitled to adjust the last trading day in accordance with the national holidays.
    Delivery Period
    Five (5) consecutive trading days after the last trading day.
    Grades and Quality Specifications
    Medium sour crude oil with the quality specifications of API 32.0 degrees and sulfur content 1.5% by weight
    The deliverable grades and the price differentials willbe stipulated separately by the Shanghai International Energy Exchange.
    Delivery Venues
    Delivery Storage Facilities designated by the Shanghai International Energy Exchange
    Minimum Trading Margin
    5% of contract value
    Settlement Type
    Physical delivery
    Product Symbol
    SC
    Listing Exchange
    Shanghai International Energy Exchange