Xinhu Futures

Time:2018-03-26 09:26

Crude oil futures went on the market officially on March 26 at Shanghai International Energy Exchange. On the opening day, the first order of entrusted trading for corporate client was obtained by overseas trader Glencore. The company conducted trading, took the first commission and struck the deal within the call auction period through the agency of Xinhu Futures Co., Ltd entrusted by Straits Financial Services Pte Ltd.


As the first internationalized futures product, crude oil futures are open to overseas investors. It is reported that Straits Financial Services Pte Ltd, as one of the first overseas intermediary brokers of Shanghai International Energy Exchange, has established entrusted brokerage business relationships with Xinhu Futures Co., Ltd. Both sides will enter into close cooperation for crude oil futures related business.


Glencore is a significant client of Straits Financial Services Pte Ltd entrusting Xinhu Futures Co., Ltd to participate in trading of crude oil futures. Glencore is the world’s largest staple commodities trader and one of the world’s largest global pluralistic natural resources corporations. It is a major commodity producer as well as a distributor whose business covers about 150 mines and smelt factories, oil tapping assets and agriculture facilities. Glencore has long-time good prospects for Chinese economy and it is fully confident of Chinese futures market. The internationalization of crude oil strengthens the pricing power of Chinese market, and Glencore expects to solve pricing and risk management problems better in the trading process with Chinese enterprises through Shanghai crude oil futures.  


Founded in 2011, Straits Financial Services Pte Ltd is dedicated to the development of strategic cooperating partner relationships with regulators, exchanges, investment institutions and industry associations including China. Mr. Roger Quek, CEO of Straits Financial Services Pte Ltd, suggests the historic deal represents the advantages of combining global market of Straits Financial Corporation and the practice of the Chinese market centered strategy. Straits Financial is experienced in energy resources market providing services including spot trading, settling and broking of over-the-counter energy derivatives. “We are delighted to take part in the new development stage and we believe it will start new opportunities for oil pricing standard in Asia.” said Mr. Roger Quek.


Mr. Yang Xidong, General Manager of Xinhu Futures Co., Ltd suggests the fact that Glencore took the first order of crude oil futures reflects that overseas traders are showing great enthusiasm about participating in Chinese crude oil futures. Overseas crude oil traders and investment institutions can take advantage of the price difference between Chinese crude oil futures and DME (Dubai Mercantile Exchange) Oman crude oil futures to conduct inter-regional price difference arbitrage trading. With the elevation of trading activity and liquidity of Chinese crude oil futures, more overseas institutions are expected to take part in Chinese futures market, which is of historic importance to seek global crude oil pricing power.