Approved by People's Bank of China, Interbank Market Clearing Co., Ltd. (hereinafter referred to as "Shanghai Clearing House") launched the central clearing operations of the RMB styrene swaps and FTA glycol imported swaps on July 20, 2015. Enmore’s subordinate, Shanghai Etong (Enmore Brokerage), got the brokerage qualification for the business, and on the launch day started the two first single deals of two products.
The RMB styrene swaps are the world's first styrene price index derivatives that take the styrene tin price in east China Jiangsu styrene market as subject matter, take the cash delivery and adopt RMB clearing and settlement; FTA glycol imported swaps are the world's first ethylene glycol price index derivatives that take the imported ethylene glycol spot prices whose delivery areas are the east China main ports as subject matter (excluding value-added tax, duties), take cash delivery, and adopt cross-border RMB clearing and settlement.
First RMB styrene swaps were achieved by Shanghai Etong commerce Co., Ltd for Nantong Chemical And Light Industry Co., Ltd., China Grand Enterprises, Inc., and PKU Founder Commodities Group (Shanghai) Co. Ltd., reaching 60 CSM0815 agreements with the deal quantity being 6000 tons and the deal amount being 56,400,000 yuan. Three clearing members, i.e. Agricultural Bank of China, Bank of China and Shanghai Pudong Development Bank, provided clearing agent service for our customers respectively.
First FTA glycol imported swaps were realized by Shanghai Etong commerce Co., Ltd for PKU Founder Commodities Group (Shanghai) Co. Ltd. and Sinowin International Trading (Shanghai) Co., Ltd, achieving 20 FMEG0815 agreements, with the deal quantity being 2000 tons and the deal amount being 10,500,000 yuan. Two clearing members, i.e. Bank of China and Shanghai Pudong Development Bank, provided clearing agent service for our customers respectively.
The glycol and styrene are wind weather vane products for China liquid chemical industry, and China is the major consumer and importer of liquid chemicals of Asia and even the whole world. When RMB styrene swaps and FTA glycol imported swaps get on operation, Shanghai Etong who provides professional brokerage services, will make the swap an effective tool for hedging of chemical upstream and downstream enterprises, promoting arbitrage hedge with spot and financial derivatives and avoiding risk. It can interact with chemical spot trading platform of Enmore Group as well as Free Trade Area, protecting the innovative development of the real economy in the new normal.... Back