December 22, 2020, Singapore
Straits Financial Services Pte Ltd (“Straits Financial”) is among the first batch to successfully conclude the first trade of the RBD Palm Olein futures on Dalian Commodity Exchange (“DCE”), which opened to foreign investors today. The trade was carried out on behalf of China Commercial Foreign Trade (Singapore) Pte. Ltd. (“CCFT”), through Xinhu Futures Co., Ltd (“Xinhu Futures”).
China is one of the largest importers and consumers of palm oil. The internationalization of palm olein futures will allow further price integration between the Chinese market and international market, which will be beneficial to the price discovery in the global palm oil market. At the same time, it can better meet the hedging needs of international firms and form a more flexible hedging tool.
CCFT specializes in the import and export business of agricultural products from Southeast Asia, the European Union, the Black Sea, America and Australia, focusing on bulk trades of palm oil, sunflower oil, non-GMO soybean oil, GMO vegetable oil and refined sugar. The internationalization of palm oil futures provides a larger and more active market for CCFT’s foreign trade and provides them a better hedging opportunity against price risks.
Straits Financial is one of the overseas intermediaries for internationalized futures products. 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, low sulfur fuel oil futures and copper futures.
“We are honored to assist our client to be among the first to trade the internationalized palm olein futures on DCE. Straits Financial has achieved many successes in assisting international firms to participate in China’s futures market and we have gained rich experience in the internationalized futures products business. Internationalization of the DCE palm olein futures will open China’s palm oil markets and lead to a deeper integration of global markets. With the further opening of China’s future market, we look forward to serving more international firms with a more diverse market and product options in the near future,” said Roger Quek, Managing Director of Straits Financial.
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.
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