08/12/2004
These include:
- Cooperation in sharing information regarding physical delivery futures contracts, clearing procedures, and risk management.
- Cooperation in developing future lines of business.
- Cooperation in exploring the feasibility of each exchange licensing the other’s products.
The Exchange is extremely pleased to pursue areas of common interest with the Shanghai Futures Exchange. As the world becomes a seamless marketplace, the convergence of key trading centers for physical commodities will become essential to market participants. The Exchange looks forward to working with the Shanghai Futures Exchange to expand the availability of its products and services in this key market center.
About the Shanghai Futures Exchange Shanghai Futures Exchange (SHFE) is the largest futures exchange in China. Merged by three futures exchanges of Shanghai in 1999, it now has three major commodity futures products (copper cathode, aluminum and natural rubber) that boast of regional and global significance. In late August, 2004, SHFE will list fuel oil contract that is the first energy-related futures contract in China.
SHFE is regulated by China's Securities Regulatory Commission (CSRC). At present, there are about 220 members, 80% of who are futures brokerage firms and 20% are proprietary members (i.e. those who trade merely for hedging purposes, like industrial manufacturers). SHFE is a fully electronic market and all the members place orders from the remote trading terminals or through the leased lines. For more details, please visit SHFE website at www.shfe.com.cn.