The Shanghai International Energy Exchange has issued draft trading rules for its proposed oil futures contract, the next step in bringing this contract to the market. The exchange's rules cover trading issues, membership, overseas participation and information management. The contract is the first that will be traded under a new regulatory framework designed to attract international participation.
FIA Asia responded in April, sending its comments on the draft rules to the exchange. FIA Asia said it supports the opening of domestic futures markets to overseas participation and recommended that the exchange adopt international standards and industry best practices to minimize potential conflicts and pave the way for recognition by overseas regulators.
FIA Asia also recommended several changes to the legal and regulatory framework governing central clearing, such as close-out netting rights and settlement finality, and urged the exchange to provide more information on significant issues such as governance and administration of the exchange rules, member liability and default fund structures.