China Securities Journal: Crude oil Futures Across-the-Market Testing in Production Environment Ended

Updated on: July 10, 2017

Reported by Zhang Lijing, Journalist from China Securities Journal

The fourth crude oil futures across-the-market testing in production environment between July 8 and July 9 has successfully concluded. Market participants believe that this marks another substantial step in the preparation for the listing of crude oil futures and the completion of preparation for the technical system.

It is reported that in order to smoothly launch the crude oil futures, Shanghai Futures Exchange (SHFE) and its subsidiary Shanghai International Energy Exchange (INE), together with China Futures Market Monitoring Center, futures firm members, oil companies, vendors, etc., carried out four crude oil futures across-the-market tests in production environment respectively between June 17 and June 18, June 24 and June 25, July 1 and July 2 and July 8 and July 9. The tests mainly included trading, clearing and other business scenarios the day before the listing of crude oil futures and the day of the listing of crude oil futures, and covered the main business process of SHFE and INE, such as trading, clearing, depositing and withdrawal of funds, hedging/arbitrage application, data reporting, market data distribution, etc. The tests have been completed smoothly and have achieved the desired results.

As of the close and settlement on July 9, at the level of SHFE, a total of 380 trading seats of 144 members were tested, involving 2,252 clients with transactions. At the level of INE, a total of 623 trading seats of 146 members were tested, involving 1,809 clients with transactions. 234,769 crude oil futures mock contract were reported, 3,307,478 board lots worth 1.1478 trillion yuan were traded in 347,798 transactions, and the total positions reached 1,687,694 lots. In addition, the deposit and withdrawal of 113.2 billion yuan was completed in 711 transactions and the deposit and withdrawal of 5.6 billion dollars was completed in 24 transactions.

Zhong Rong Hui Xin Futures said that the technical team of SHFE had released an upgraded client version of crude oil before the tests and given full technical support to solve the problems encountered in the tests, making the whole process very smooth.

Dalu Futures thought that the whole process of the tests was characterized by reasonable scenario design, clear focus and sufficient environmental preparation, and the technical team of SHFE provided satisfying services and solved the problems of the firm at the earliest possible time day and night, ensuring the successful completion of the tests.

TF Futures said that through the tests, the firm achieved a comprehensive understanding and grasp of trading, clearing, deposit and withdrawal of funds and other business process, which laid a very solid technical foundation for the listing of crude oil futures, so the firm had great confidence in the listing of crude oil futures.

It is learned that SHFE, INE and market participants have been well prepared and the problems found in the tests have basically been effectively resolved based on the overall situation of the tests. At the next stage, they will continue to do the preparatory work prior to the listing and strive to launch crude oil futures in the year.