Shanghai International Energy Exchange

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Shanghai International Energy Exchange
Founded 2013
Headquarters Shanghai, China
Products Energy Derivatives

The Shanghai International Energy Exchange Co., Ltd., or INE, is an international exchange jointly established by entities including the Shanghai Futures Exchange, and open to global futures participants. It is a self-regulated entity approved by the China Securities Regulatory Commission.

Registered in the China (Shanghai) Pilot Free Trade Zone on November 6th, 2013, INE provides the listing, clearing and delivery of energy derivatives including crude oil, natural gas, petrochemicals, and others.[1]

History

Products and Services

The exchange offers trading in crude oil, natural gas and petrochemical derivatives.

Its crude oil futures contract, launched on March 26, 2018, was the first CSRC-approved futures product in mainland China open to foreign participation.[2] The contracts are Renminbi-denominated and each contract is for a volume of 1,000 barrels. Seven oil grades are deliverable against it, including China’s Shengli crude and six from the Middle East, such as Dubai crude and Basrah Light.[3]

Since their launch, the Shanghai crude futures have stolen some market share from the incumbent benchmarks, Europe’s Brent and U.S. West Texas Intermediate, which trade oil derivatives worth trillions of dollars every year. Volumes have also risen past other crude futures, such as those on the Dubai Mercantile Exchange.

Key People

References

  1. Overview. Shanghai International Energy Exchange.
  2. Global Trading Giants Dip Toes in China Oil Futures on Debut Day. Bloomberg.
  3. China seeks to extend oil market clout with new contract. The Financial Times.