Copper counterparty clearing scheme launched in FTZ

By Ye Zhen | February 6, 2015, Friday |

Online Edition

Shanghai Clearing House (SCH) today launched a central counterparty clearing business for copper-premium swap trading in the city’s pilot free trade zone.

This is part of efforts to diversify financial derivatives for the zone-based enterprises.

The first deal of 4,400 contracts, completed as soon as the new business got under way, involved 22,000 tons of copper worth of 12.5 million yuan (US$2 million), the SCH announced at the launch ceremony.

The central counterparty clearing refers to the process by which financial transactions are cleared by a single counterparty, such as a clearing house.

The Free-Trade-Zone Copper-Premium Swap contract, which takes Yangshan copper premiums index as a clearing basis, is priced, cleared and settled in yuan and traded in a lot size of 5 tons.

“The swap will enable copper-related companies to hedge against price volatility and is conductive for Chinese copper traders to boost their pricing power in international market,” said Xu Zhen, chairman of SCH.

Copper enterprises and financial institutions that have opened free trade accounts are qualified for the business.

The clearing house also allows liquidity providers to facilitate the trading of the derivative.

Business FTZ

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Copper counterparty clearing scheme launched in FTZ

Email this to your friend