02 May 2012 11:09 [Source: ICIS news]
An SHFE official said earlier the government has not fixed a schedule to launch the trading as it was still being studied.
The SHFE has drafted two preliminary schemes for crude trading and it will organize seminars for futures brokers in
According to a source with knowledge of the schemes, they are for bonded delivery and cash settlement schemes.
Both schemes will have the Chinese yuan as the currency of the contracts and 100 barrels as a standard lot size, the source said, adding that SHFE will offer conversion to dollar for overseas participants.
It is not immediately known what the benchmark crude of the contracts will be.
Sources said that SHFE is considering a crude basket with typical grades from
The delivery site will be in
Crude futures trading in
Independent domestic refiners, local government-owned oil companies, foreign oil companies and foreign investment banks are expected to take part in the trading, a south China-based oil trader said.
"We will take part if we get go ahead from the central government for transhipments of imported crude,” a source from an independent refiner in
However, bonded delivery will be a barrier, according to the trader.
Currently only the five state-owned oil majors which have crude import licenses and companies officially permitted to import crude with predetermined import quotas are entitled to crude bonded delivery, he said.
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