Ye Chunhe: Gold Futures Market in Increasingly Urgent Need of International Transformation

Updated on Sep 15,2014

September 15, 2014

By Liu Xiao

Recently, Vice General Manager of the Shanghai Futures Exchange (SHFE) said at the 1st China Gold Congress jointly organized by the China Gold Association and the World Gold Council that the SHFE will, under the basis of the existing Continuous Trading Program (or the Night Trading Session), strive to further extend the trading time and to realize the continuous trading of 24 hours. Meanwhile, it will try to cover its experience accumulated in building the Shanghai International Energy Exchange Corporation and relevant policies it received to the existing futures products and will attempt to promote the trading internationalization of such products as gold and silver.

Ye Chunhe said that in terms of improving the external environment of gold futures market, the SHFE is now actively conducting cooperation with the national administrative departments and relevant exchanges. First, the SHFE will explore to set up the supervision and coordination mechanism with the Shanghai Gold Exchange, with an aim of promoting the interactive regulation of the futures and spot markets and strengthening the cross-market risk prevention capacity; second, it will closely cooperate with relevant regulatory developments, crack down on underground gold and silver speculations, and protect the legitimate rights and interests of investors; third, it will cooperate with the Ministry of Finance to revise and improve relevant financial regulations of hedging, so as to enable enterprises to participate in the hedging of the futures market smoothly.

With regard to its development, the SHFE will center on the existing gold futures products, strive to launch gold futures options, explore and research relevant index products, and enrich the product line. Meanwhile, it will refer to the international experience and explore and research the new delivery method that fully meets entity industry’s demands and enhance the settlement efficiency.

In addition, he said that China’s gold market is encountering many opportunities and challenges at present. The SHFE will firmly grasp the principle of making progress in stability and strengthen the self-regulation and risk control. And it will center on the reality of “emerging and transition”, try to seize the opportunity, face up to challenges, and accelerate its innovative paces, so as to make contributions to the successful transformation and upgrading of China’s gold industry.

Source: Great wisdom AAStocks Newswires