11 October 2013 05:31 [Source: ICIS news]
SINGAPORE (ICIS)--China’s proposed crude futures contracts will be traded at Shanghai international energy trading centre, set up in Shanghai Pilot Free Trade Zone, a senior official from Shanghai Futures Exchange (SHFE) said on Friday.
The centre will be operated and owned by Shanghai International Energy Trading Centre Co, a wholly owned subsidiary of SHFE, according to Lu Feng, director of energy and chemical department of the bourse.
Landing the crude futures in Shanghai free trade zone is aimed to take advantage of far-freer policies there, including currency, tax and financial regulations.
“Putting the platform in the free trade zone maximises conveniences to foreign investors,” said Lu.
Based on the series of policies announced, companies in the Shanghai free trade zone are free in converting currencies. Elsewhere in the country, there are many restrictions on currency exchanges.
On the other hand, China has yet to set specific timeline for the launch of the crude futures trading.
Some industry sources said the trading could start in the first half of 2014.
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