The Shanghai International Energy Exchange (INE) could launch a copper futures contract available to foreign participants as early as Q4 2020, some sources said. The contract is under review by the China Securities Regulatory Commission (CSRC), said one source with direct knowledge of the matter, adding that the exchange aimed for a launch late in the third quarter or early in the fourth quarter. Three other sources familiar with the plan said the launch could happen in Q4 2020. INE also called public comments for this new copper contract (https://qmhedging.blogspot.com/2020/10/inerequesting-public-comments-on-copper.html) China is the world's top copper consumer and its Shanghai Futures Exchange (ShFE), which owns the INE, currently offers a copper futures contract that is not open to foreign participation and is subject to value-added and import taxes. The ShFE said that the international contract will be denominated in yuan, with prices net of tax and bonded delivery. To see the difference between SHFE copper and INE copper (https://qmhedging.blogspot.com/2020/10/ine-similarities-and-differences.html) The exchange will "launch international copper futures on the INE in 2020 (but) the exact listing time is undetermined," it said in an email to media. The INE currently offers international investors three Chinese futures contracts in crude oil, TSR 20 natural rubber and low-sulphur fuel oil. Other internationalized products are PTA from ZCE and Iron Ore from DCE. "The mode of participation of traders and brokers in this (copper) contract is roughly the same as the current three INE varieties," ShFE said. The CSRC did not respond to a request for comment. The contract's lot size is expected to be five tonnes of grade A copper on warrant in bonded warehouses including Shanghai Lingang Bonded area, Shanghai Waigaoqiao Bonded area and Shanghai Yangshan Bonded port area, said John Browning, managing director at broker BANDS Financial. He added that capital constraints and the need to have both onshore and offshore client accounts mean liquidity to trade copper arbitrage between ShFE and the London Metal Exchange has been problematic from time to time. To get more info about China internationalized derivatives, please check https://www.fangquant.com/node/daily-morning