Updates with background BEIJING/SHANGHAI, Oct 23 (Reuters)
Updates with background
BEIJING/SHANGHAI, Oct 23 (Reuters) – China’s securities regulator stated on Friday it had accepted a global copper futures contract for launch on Nov. 19, in a transfer that may give overseas traders entry to buying and selling on this planet’s prime shopper of the metallic.
Gao Li, a spokeswoman for the China Securities Regulatory Fee, introduced the launch date for the contract, which might be traded on the Shanghai Worldwide Power Alternate (INE), at a weekly news briefing.
The INE copper contract has been a lot awaited by overseas traders seeking to hedge publicity in China. The Shanghai Futures Alternate (ShFE), which owns the INE, has a home copper contract SCFcv1 however it isn’t accessible to overseas market members.
The change revealed a draft of the worldwide contract on its web site final week, looking for public suggestions on the proposed buying and selling, supply and danger administration guidelines. The deliberate contract dimension might be 5 tonnes of copper cathode per lot – the identical dimension because the ShFE contract – however the quoted worth in yuan will exclude tax and customs responsibility.
The INE had earlier stated on Wednesday it will maintain two weeks of mock buying and selling for the brand new contract from Oct. 26 to Nov. 6., a standard apply by Chinese language exchanges earlier than a reside launch.
China has to date internationalised 5 commodities futures contracts as a part of its ambitions to change into a commodities pricing energy: crude oil, TSR 20 rubber, low-sulphur gas oil, iron ore purified terephthalic acid (PTA).
Overseas traders presently have restricted entry to China’s sizable commodities markets.
(Reporting by Jenny Su and Emily Chow; Further reporting by Tom Daly; Modifying by Mark Potter and Kim Coghill)
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