GREAT WISDOM: THE SHFE TO IMPROVE PRODUCT DEVELOPMENT, SPEED UP INT’L PLATFORM CONSTRUCTION

Updated on May 12,2014

May 12, 2015

By Xin Bei

Relevant person from the Shanghai Futures Exchange (SHFE) said a few days ago that the SHFE will continue to take chance of the release of the “Some Opinions of the State Council on Further Propelling Sound Growth of the Capital Market” (the “Opinions” for short), and it will improve the development of fundamental products, speed up the construction of an international platform, promote the application of information technologies which is represented by the Internet in the futures market, and facilitate the early promulgation of the Futures Law. And it will achieve transformational development driven by innovation.

This person said that the SHFE will start from such aspects as product transformation, internationalization, and futures market’s legal construction and fully implement all deployments of the “Opinions” on the reform and opening-up of the futures market, so as to further bring off the price-finding and risk management functions of the futures market and strengthen its ability of serving the real economy.

With regard to product transformation, the SHFE will continue to improve the development of the four major fundamental product series (nonferrous metals, ferrous metals, precious metals, and energy and chemicals), launch the commodity index futures, options and other derivatives, and accelerate the development and listing of crude oil futures.

In terms of the internationalization, in light of domestic capital market’s new round of opening up and taking the opportunity of launching crude oil futures, the SHFE is now paying close attention to the construction of an international crude oil futures platform, actively ushering in overseas investors, and facilitating the release of relevant supporting policies, laws, and regulations for the opening-up, with an aim of steadily promoting the internationalization of the SHFE.

Over the matter of the legal construction of the futures market, the SHFE will actively cooperate and participate in the legislation of the “Futures Law” so as to facilitate the early issuance of China’s futures law. Meanwhile, it will, in response to listing of crude oil futures, continue to revise its articles of association, contracts, trading rules, and detailed implementation rules, further improve its risk control management measures and violation handling measures, strengthen integrity constraints, and establish a system of legal rules acting on international convention, so as to facilitate the stable operation of the futures market and the innovation of all its business lines through legal construction.

Besides, under the backdrop of the blooming of the online finance, the SHFE will actively promote the application of information technologies, with the Internet as its representative, in the futures market, carry out research in business modes and technologies, grasp the development trend of future information technologies such as the “Big Data” and the “Cloud Computing”, and build a leading comprehensive trading platform in this industry, thus providing the market with more convenient and diversified products and services.