China launches futures for foreign investors

14/08/2019

 

 

The commercial margin for each contract was 7% of the contract value

 

 

China has begun negotiating TSR 20 futures, open to foreign investors. A futures is a standardized forward contract, a legal agreement to buy or sell something at a predetermined price at a specified time in the future, between parties not known to each other.

Futures listed on the Shanghai International Energy Exchange are contracts to be delivered from February to July 2020. The reference prices of six contracts were set at 9,260 yuan ($ 1,319). The commercial margin for each contract was 7% of the contract value, while it stood at 9% in the initial period.

 

The most active NR2002 contract opened 5.9% more at 9,805 yuan per ton

 

According to initial data, the daily trading band is 7% more or less than the settlement price on the previous trading day.

The most active NR2002 contract opened 5.9% more at 9,805 yuan a tonne. In particular, TSR 20 futures are the future futures on commodities in the country open to both domestic and foreign investors, after crude oil futures, PTA futures and iron ore futures also arrived.

 

China will further open its commodity futures market

 

Fang Xinghai, vice president of the China Securities Regulatory Commission, said: “In recent years, China has opened more commodity futures for foreign investors and has improved the corresponding institutional systems and processes.”

“China will further open its commodity futures market to increase the influence of its commodity futures on global pricing,” Fang added.

 

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