As one of the futures products listed earlier in China, copper futures will soon start the internationalization of non-ferrous metal futures.
Matters related to the listing and trading of international copper futures
June165438+1October1The last issue of Energy announced the international copper futures contract and related detailed rules, focusing on the listing and trading of international copper futures before the official listing.
According to the notice issued by the last energy issue, international copper futures will be listed and traded on Thursday, June165438+1October 19, 2020. 08: 55-09:00 call auction on that day, and the market opened at 09:00.
The contracts listed are BC2 103, BC2 104, BC2 105, BC2 106, BC2 107, BC2 108 and BC2/KLOC. The benchmark price for listing is announced by the Energy Center on the trading day before listing.
Trading time: 09: 00- 10: 15,10: 30-1:30 and13: 30-/kloc-0 every Monday to Friday. No trading will be conducted during the continuous trading period on the first working day before legal holidays (excluding Saturday and Sunday).
In terms of trading margin and price limit, the trading margin is 8% of the contract value; The daily limit is 6%, which is twice as high as the daily limit on the first day.
It is worth noting that foreign special non-brokerage participants and overseas customers can use foreign exchange funds as deposits. If foreign exchange funds are used as the deposit, the central parity of RMB exchange rate announced by China Foreign Exchange Trading Center on the same day shall be used as the benchmark price for the verification of its market value. At present, the Energy Center stipulates that the foreign exchange currency that can be used as the deposit is US dollars, and the discount rate is 0.95. The market value of foreign exchange funds before the closing of the day shall be recorded according to the central parity of RMB exchange rate published by China Foreign Exchange Trading Center on the previous trading day. At the time of daily settlement, the benchmark price of foreign exchange funds used as margin shall be re-determined according to the above method, and the discount amount shall be adjusted.
In terms of position announcement, when the position of a contract reaches10.5 million lots (unilaterally) after the closing, the Energy Center will announce the trading volume, buying position and selling position of the top 20 futures company members and overseas special brokerage participants in that month.
International copper futures contracts and related rules
According to the reporter's understanding, the contents of the officially released international copper futures contract and related detailed rules are consistent with the exposure version released on June 16, and the following three points deserve attention:
1. The international copper futures price does not include value-added tax, the contract trading unit is 5 tons/lot, the minimum change price is 10 yuan/ton, the price limit is 3% of the settlement price of the previous trading day, the minimum trading margin is 5% of the contract value, the contract delivery month is1-65438+February, the delivery date is five consecutive trading days after the last trading day, and the delivery unit is.
Second, international copper futures are consistent with previous copper futures in terms of trading unit, quotation unit, minimum change price, contract month, trading time, last trading day, delivery unit and settlement price.
Thirdly, there are differences between international copper futures and previous copper futures in terms of price meaning, delivery grade, delivery method, delivery date, position limit in different operation stages, trading code and so on. In terms of delivery grade, the delivery standard of international copper futures meets the requirements of Grade A copper in GB/T467-20 10 or BSEN 1978: 1998. In terms of the general position ratio and position limit at different stages, in order to effectively prevent and control risks, the position limit of international copper futures was narrowed at the initial stage of contract listing compared with that of previous copper futures. The person in charge said that forward-looking and prudent design ideas will help international copper futures to run smoothly and play a good role in the initial stage of listing.
China's first international futures contract operating in a "double contract" mode.
International copper futures is the first international futures contract in China to operate in a "double contract" mode. The overall design idea is to list the international copper futures of the previous issue in a specific variety mode on the basis of keeping the copper futures price unchanged, that is, the "double contract" mode.
The person in charge of energy in the previous issue told the Futures Daily reporter that the "double contract" model is a new business based on the bonded market and the international market without changing the existing domestic market structure, which is helpful to ensure the smooth operation of the copper futures contract in the previous issue and to carry out new business in an orderly manner.
"On the one hand, the copper futures of the previous issue are based on the tax-included market in customs clearance, reflecting the relationship between supply and demand in the domestic market, and its price has become the pricing benchmark for domestic spot trade; On the other hand, international copper futures face the duty-free market outside the customs, reflecting the relationship between supply and demand in the international market. " He explained.
He said that in order to ensure the smooth operation of international copper futures, Energy always takes serving the real economy as the starting point and the end result of all its work, conducts in-depth market research and research and demonstration on international copper futures, and formulates targeted trading, settlement, delivery and risk control measures to promote the smooth listing and steady operation of international copper futures.
Specifically, first, according to the overall risk control requirements and the characteristics of different stages of contract operation, scientifically set up the price limit and margin system to effectively prevent trading risks; The second is to set up a reasonable speculative position limit system and implement a hedging transaction position approval system; Third, according to market development, expand delivery resources, rationally arrange delivery warehouses, and effectively prevent delivery risks; Fourth, carry out investor education at multiple levels to ensure the healthy and stable operation of international copper futures.
For all kinds of participants in the international copper futures market, he suggested that investors should fully understand the risks of participating in futures trading, be familiar with international copper futures contracts and related business rules, and participate in futures trading rationally; The upstream and downstream enterprises in the copper industry chain should understand, be familiar with and master the rules of the futures market, and constantly improve the level of hedging in the futures market in practice; Member units should fully understand and master the laws and regulations of the futures market, achieve compliance management and controllable risks, and help investors make full use of the hedging and price discovery functions of international copper futures to serve the real economy.
It provides a brand-new risk management tool for the industry.
According to Ge Honglin, secretary of the Party Committee of China Nonferrous Metals Industry Association, the launch of the last energy international copper futures provided a brand-new risk management tool for the entities in the copper industry chain in China and even the whole world, which further met the diversified risk management needs, provided the industry with a transparent and fair international market price denominated in RMB, and contributed to the high-quality development of China nonferrous metals industry. He expects to continue the previous issue in the future, focus on the interaction and integration of industry and finance, and steadily promote the internationalization of non-ferrous metal futures.
"China is a big producer, consumer and importer of refined copper. It is expected that the Far East market represented by China will continue to contribute to the main growth of copper production, consumption and trade in the future. " Paul Wright, Secretary General of International Copper Research Group, said that the international copper futures launched in the last issue will help global investors to participate in the formation of "Shanghai price", thus further enhancing China's international influence in the global copper industry. He also expects the international copper research group to continue to strengthen cooperation with the last energy and the last research institute.
As an important copper enterprise in China, Xu Changning, director of futures business of Tongling Nonferrous Metals Co., Ltd., believes that the energy international copper futures launched in the last issue has added a "sharp weapon" to the hedging toolbox of copper enterprises, and its characteristics of net price trading and bonded delivery have reduced the cost of hedging for enterprises and avoided the risks brought by the change of VAT rate; The RMB pricing model adds a new choice for enterprises to settle at sight in the future import and export trade process, which effectively reduces the exchange rate risk; The international platform enables global investors to fully participate in the formation of Shanghai copper price, which helps to enhance its international influence.
Zhang Jianhui, manager of the futures management department of Yunnan Copper Co., Ltd. also said that the listing of international copper futures has added a market choice for copper smelters to process re-exported copper products. Enterprises can compare and calculate the price of domestic copper futures "double contract" and LME copper futures, and choose the most favorable quotation for spot trading. In addition, the RMB pricing model of international copper futures is very convenient and the delivery process is shorter, which avoids the foreign exchange risk of domestic enterprises in the transaction and is also conducive to reducing costs.
"The launch of international copper futures will help improve the influence of China, the world's largest copper consumer market. In particular, if foreign mines, smelters and traders can agree on the benchmark price as the international copper futures contract price in the spot contract in the future, it will have a significant impact on domestic and international copper spot trading, which is very meaningful for enhancing the price influence of China copper. " Zhang Jianhui said.
Wei Lai, chief metal analyst in the industry, said that the listing of the last energy international copper futures not only provided more target varieties and arbitrage opportunities for copper import transactions in China, but also further enriched the structure of market participants and improved the functions of serving entities and price discovery in the futures market.
On the one hand, because the international copper price includes three important variables: LME copper price, premium in bonded area and RMB exchange rate, using international copper futures for import transactions can not only preserve the absolute price itself, but also lock the premium in bonded area to a certain extent to avoid the risk of fluctuation of premium, which was difficult to lock the premium in the past and was of great significance to importing enterprises.
On the other hand, enterprises can also use international copper contracts to lock in exchange rate risks and avoid exchange rate exposure, which greatly reduces the cost of locking in foreign exchange by other means. For some enterprises that want to participate in import transactions before, but are limited by factors such as qualification and foreign exchange, the listing of international copper provides convenience for these enterprises to participate in import transactions, which not only avoids the relatively complicated trading system and expensive transaction costs of overseas platforms, but also solves the problems of foreign exchange quota and overseas channels, which will further enrich the structure of market participants.
Wu, a copper researcher in the industry, also believes that the listing of international copper futures not only provides a new hedging tool for copper enterprises, but also helps them to avoid the risk of fluctuation of internal and external spreads more effectively, and also provides a better platform for foreign investors and copper enterprises to participate in the copper futures market in China. In addition, the launch of this contract is also conducive to accelerating the internationalization of the domestic futures market and enhancing the price influence of China in the global copper market. Finally, the settlement in RMB is also conducive to promoting the international use of RMB and promoting the internationalization of RMB.
On June165438+1October1day, 2020, the Shanghai International Energy Exchange Center (hereinafter referred to as the last issue) under the Shanghai Futures Exchange released the international copper futures contract and related rules, and the relevant person in charge was interviewed by the media on international copper futures contracts, transactions and other related issues.
Q: Why do you want to launch international copper futures?
A: Copper is one of the most important nonferrous metals. At present, China is the largest producer, consumer and importer of refined copper in the world. According to the statistics of China Nonferrous Metals Industry Association and China Customs, in 20 19, China's refined copper output was 9.784 million tons, accounting for 4 1.24% of the global total, and its consumption was120.8 million tons, accounting for 50.72% of the global total. In 20 18, Energy officially launched international research and development of nonferrous metal futures, actively and steadily promoted listing, and launched international copper futures mainly based on the following three considerations:
First, there are two copper spot markets in China: the domestic tax-included market and the domestic bonded market. The tax-included market is within the customs clearance, reflecting the relationship between supply and demand in the domestic market; Customs is a duty-free market, reflecting the supply and demand relationship in the international market in the Far East time zone.
Second, the "domestic customs clearance" copper spot market has formed a large scale. The domestic bonded copper spot market is mainly in Shanghai, Guangdong, Jiangsu, Fujian and Tianjin, among which Shanghai has formed a large scale, and the bonded copper spot is freely circulated and traded, with extensive participation of entities.
Third, copper futures have basic conditions for opening to the outside world. Copper is closely related to the macro-economy at home and abroad and the prices of various major assets, and is called "Dr. Copper". Copper futures price and its term structure are important forward-looking indicators to judge the macroeconomic trend at home and abroad. The copper futures of the previous issue have a long history, sufficient liquidity and full market function. Its price is the pricing benchmark of domestic spot trade, and the last issue has become one of the three largest copper pricing centers in the world recognized by the international copper industry. At present, many international manufacturers and investment banks have set up subsidiaries or trading companies in China to participate in the trading and delivery of copper futures. After the long-term communication with the international copper industry and the establishment of a global exchange platform in the previous issue, the negotiation place of the international annual spot purchase contract has gradually moved from London to Shanghai.
Q: Please briefly introduce the design idea of international copper futures?
A: The overall design idea of international copper futures is to list the international copper futures of the previous period in a specific variety mode on the basis of keeping the varieties of the previous period unchanged, that is, the "double contract" mode, which is the first international futures contract operating in the "double contract" mode in China. International copper futures, as the sixth domestic specific product in China after crude oil futures, iron ore futures, PTA futures, No.20 glue and low-sulfur fuel oil, will adopt the trading mode of "international platform, net price trading, bonded delivery and RMB pricing" and fully introduce foreign traders to participate.
The "double contract" mode is a new business based on the bonded market and the international market without changing the existing domestic market structure, which is conducive to the orderly development of new business on the premise of ensuring the smooth operation of the previous copper futures contract. The copper futures in the previous issue are based on the tax-included market in customs clearance, reflecting the relationship between supply and demand in the domestic market, and their prices become the pricing benchmark for domestic spot trade; International copper futures face the duty-free market outside the customs, including the countries and regions outside the customs and the Far East time zone, which reflects the relationship between supply and demand in the international market.
Q: Why do you choose Grade A electrolytic copper as the subject matter of international copper futures contracts?
Answer: International copper futures deliver cathode copper that meets the requirements of grade I copper in GB/T467-20 10 or BSEN 1978: 1998, while future copper futures deliver cathode copper that meets the requirements of GB/T467-20 10/KLOC-0. With the development of domestic smelting technology, in recent years, the products of major domestic copper smelters are mainly Grade A copper, and the delivery products of LME and COMEX basically meet the quality standards of Grade A copper, so Grade A copper is selected as the delivery product of international copper futures.
Q: What are the noteworthy aspects of international copper futures in terms of contracts and related business rules?
A: The officially released version of the international copper futures contract and related rules is consistent with the last version for comments released on June 10. International copper futures contracts and related business rules have the following three points worthy of attention:
1. The international copper futures price does not include value-added tax, the contract trading unit is 5 tons/lot, the minimum change price is 10 yuan/ton, the price limit is 3% of the settlement price of the previous trading day, the minimum trading margin is 5% of the contract value, the contract delivery month is1-65438+February, the delivery date is five consecutive trading days after the last trading day, and the delivery unit is.
Second, international copper futures are consistent with previous copper futures in terms of trading unit, quotation unit, minimum change price, contract month, trading time, last trading day, delivery unit and settlement price.
Thirdly, there are differences between international copper futures and previous copper futures in terms of price meaning, delivery grade, delivery method, delivery date, position limit in different operation stages, trading code and so on. For example, in terms of delivery grade, the delivery standard of international copper futures meets the requirements of Grade A copper in GB/T467-20 10 or BSEN 1978: 1998. In terms of general position ratio and position limit at different stages, in order to effectively prevent and control risks, from a prudent point of view, the position limit of international copper futures at the initial stage of contract listing is narrower than that of previous copper futures. Forward-looking and prudent design ideas are conducive to the smooth operation of international copper futures and play a good role in the initial stage of listing.
Q: How to prevent risks in the last period of energy and ensure the smooth operation of international copper futures?
A: In the previous period, Energy always took serving the real economy as the starting point and the end result of all its work, conducted in-depth market research and research and demonstration on international copper futures, and formulated targeted trading, settlement, delivery and risk control measures to promote the smooth listing and steady operation of international copper futures.
First, according to the overall risk control requirements and the characteristics of different stages of contract operation, scientifically set up the price limit and margin system to effectively prevent trading risks. The second is to set up a reasonable speculative position limit system and examine and approve hedging trading positions. Third, according to market development, expand delivery resources, rationally arrange delivery warehouses, and effectively prevent delivery risks. Fourth, provide multi-level and in-depth education to domestic and foreign investors to ensure the healthy and stable operation of international copper futures.
Q: What problems should various market participants pay attention to when trading international copper futures?
A: Investors should fully understand the risks involved in futures trading, be familiar with international copper futures contracts and related business rules, and participate in futures trading rationally. The upstream and downstream enterprises in the copper industry chain should understand, be familiar with and master the rules of the futures market, and constantly improve the level of hedging in the futures market in practice. Member units should fully understand and master the laws and regulations of the futures market, achieve compliance management and controllable risks, and help investors make full use of the hedging and price discovery functions of international copper futures to serve the real economy.
In the previous period, the Institute of Energy will do a good job in daily risk monitoring, pre-research and pre-judgment, take effective measures in time to resolve potential risks, and firmly hold the bottom line that no systematic risks will occur. At the same time, earnestly fulfill the front-line self-discipline duties, severely crack down on all kinds of illegal acts, and maintain the normal trading order of the futures market.
The construction of international copper futures market is a long-term process. In the last issue, the Energy Institute hopes and welcomes domestic and foreign investors to actively participate in international copper futures trading, and we will also provide convenient and efficient services for traders.