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在线翻译:
szdaily -> Markets -> 
Nod given to launch of international copper futures
    2020-10-26  08:53    Shenzhen Daily

THE securities regulator said Friday it had approved an international copper futures contract for launch Nov. 19, in a move that will give foreign investors access to trading in the world’s top consumer of the metal.

Gao Li, a spokeswoman for the China Securities Regulatory Commission, announced the launch date for the contract, which will be traded on the Shanghai International Energy Exchange (INE).

The INE copper contract has long been awaited by foreign investors looking to hedge exposure in China. Its price will be quoted in yuan but exclude tax and customs duty, since delivery will be into bonded warehouses.

INE parent the Shanghai Futures Exchange (ShFE) has a domestic copper contract, but it is not accessible to foreign market participants.

The international copper pricing benchmark is the London Metal Exchange (LME) contract, denominated in U.S. dollars, while CME Group has a copper contract in the United States.

LME chief executive Matt Chamberlain welcomed the roll-out of another contract.

“It’s good for the market to have a wide range of contracts to trade and arbitrage,” he said.

“We do well out of the arbitrage business and the fact that there is now going to be a third [international] contract can only be a good thing.”

In a circular Friday, the INE invited applications from potential market makers for its copper contract. Market makers are frequently deployed by exchanges to ensure liquidity.

Interested parties must have net assets of at least 50 million yuan (US$7.5 million) or equivalent in foreign currency, and have until Oct. 30 to apply.

The INE published a draft of the contract two weeks ago, seeking feedback.

China has so far internationalized five commodities futures contracts as part of its ambitions to become a commodities pricing power — crude oil, TSR 20 rubber, low-sulphur fuel oil, iron ore and purified terephthalic acid.

(SD-Agencies)

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