Shanghai Futures Exchange (SHFE) has inked a deal with Central
Japan Commodity Exchange to cooperate in a wide range of
fields.
According to the agreement, the two bourses will join forces in
information sharing, staff training and exchanges, product research
and development and market promotion.
Industry analysts and experts said such cooperation would not
only benefit both exchanges but also boost the development of the
region's derivatives market.
In 2006, CJCEX ranked fifth among world commodity exchanges in
terms of transaction volume in energy products.
It trades 10 futures products, including gasoline, kerosene,
steel scrap and eggs, since it merged with Osaka Mercantile
Exchange this January.
CJCEX is one of the few commodity exchanges in the world to
trade both steel and energy products.
In addition, CJCEX is the largest exchange in the world for
gasoline futures. It was the first to introduce trading in steel
scrap futures and the only bourse where egg futures are traded.
SHFE president Yang Maijun said the exchange would seek more
cooperation opportunities with other exchanges and would further
expand its product range to better serve the nation's economic
development.
According to SHFE vice-president Huo Ruirong, the exchange is
waiting for the regulator's approval for the introduction of steel
futures products.
Huo also told China Daily that metals, including silver,
nickel and lead, will be the next futures to be launched after
gold.
The exchange is in the final stages of preparing to launch gold
futures, and the China Securities Regulatory Commission is
examining the details of the contract. Meanwhile, the exchange is
stepping up efforts to educate investors.
Industry experts said that the similar product range of SHFE and
CJCEX means they could learn from each other and explore business
opportunities through cooperation.
Both exchanges trade futures contracts for fuel oil, aluminum
and natural rubber.
(China Daily November 14, 2007)
