News

Straits Financial clinched the first trade for INE bonded copper futures

Nov 22, 2020

19 Nov 2020, Singapore

Straits Financial Services Pte Ltd (“Straits Financial”) successfully clinched the market’s first trade on launch day for the bonded copper futures contract on the Shanghai International Energy Exchange (“INE”), a subsidiary of the Shanghai Futures Exchange (“SHFE”). The trade was executed on behalf of Envy Global Trading, through Xinhu Futures Co., Ltd (“Xinhu Futures”). 

The bonded copper futures contract is the sixth internationalized futures product, after crude oil, iron ore, PTA, TSR20, low sulfur fuel oil futures. Similar to previous internationalized futures, the contract is yuan-denominated, physically settled and open to foreign investors. The Shanghai Futures Exchange has a long history in the copper futures market. It has played an important market function in risk management, price discovery and resources allocation. The “Shanghai Price” and “London Price” complements each other, and the Shanghai Futures Exchange has become one of the world's three major copper pricing centers recognized by the international copper industry.

Envy Global Trading is the commodity trading arm of envy group, a Singaporean conglomerate with investment in various sectors. Its commodity trading firm focuses on base metal trading, mining, financing and investments. The newly launched bonded copper futures enriches the current arbitrage options and bring about more arbitrage opportunities and spreads across the different markets for Envy Global Trading. As a commodity trading firm, the bonded copper futures also allows the firm to enjoy a new pricing and delivery option. 

Straits Financial is one of INE’s overseas intermediaries and with the support of Xinhu Futures, it has previously secured many first trades of the internationalized products upon launch, including the crude oil futures, iron ore futures, TSR 20 futures and low sulfur fuel oil futures. "With the launch of the bonded copper futures, international investors now have more choices in accessing Chinese futures products. At the same time, it also demonstrates the consistent development of the internationalized futures. We are delighted to record another first trade and to be able to enrich our product offerings. Straits Financial has gained plenty of experiences and honours in offering internationalized futures contracts. We will continue to dive deeper and provide quality services to our clients and international investors," said Roger Quek, Managing Director of Straits Financial.

Yang Xidong, General Manager of Xinhu Futures, believes that the launch of the internationalized copper futures, the first international futures contract in China to operate a “dual contract” mode, will realize the linkage of prices between Shanghai copper, international copper and London copper, which provides a convenient liquidity and price risks mitigation tool for global trade. It is of great significance to elevating China’s pricing power in the global copper market and further opening of the futures market. By assisting our client in clinching the first trade this time will help Xinhu Futures to better service our domestic and foreign customers in providing support in the internationalized futures business.

About Straits Financial

Headquartered in Singapore, Straits Financial Group is the brokerage house under CWT Pte. Limited that offers a full spectrum of derivatives & OTC products, including trade facilitation for physical commodities. Established affiliate offices are in Chicago, New Jersey, Shanghai and in Jakarta. Straits Financial is a full Clearing Member of the Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), the Commodity Exchange (COMEX), CME Clearport, Dubai Mercantile Exchange (DME), CBOE Futures Exchange (CFE), and Asia Pacific Exchange (APEX). It is also the first batch of Overseas Broking Special Participant of the Shanghai International Energy Exchange (INE). Straits Financial offers clearing access to all major global commodity exchanges. For more information, visit www.straitsfinancial.com.

About Xinhu Futures

Headquartered in Shanghai, Xinhu Futures operates nationwide with 28 branches as well as a risk management business subsidiary and a global business subsidiary - Xinhu International (HK). Xinhu Futures is the clearing member of INE, DCE, CZCE, SHFE;  general clearing member of CFFEX. Xinhu futures is dedicated to provide one stop consulting and trading service for global clients over the years.

DISCLAIMER: This document is issued for information purposes only. This document is not intended, and should not under any circumstances to be construed as an offer or solicitation to buy or sell, nor financial advice or recommendation in relation to any capital market product. All the information contained herein is based on publicly available information and has been obtained from sources that Straits Financial believes to be reliable and correct at the time of publishing this document. Straits Financial will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Trading commodity futures and options products presents a high degree of risk, and losses in excess of your initial investment may occur. Past performance or historical record of futures contracts, derivatives contracts, and commodities is not indicative of the future performance. The information in this document is subject to change without notice.  The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices.