What are the requirements of Futures Crude oil trading on the market?
Recently, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said that China plans to open its domestic futures market to more foreign investors and launch more futures products, including crude oil futures, which has aroused great concern in the market.
Crude oil futures market has become an important part of the world energy market and has a profound impact on the operation of the world energy market. From the practice and operation history, the emergence and operation of the futures market has special requirements for the environment. A mature and standardized market economy system is the prerequisite for the existence and development of oil futures market. What are the requirements of Futures Crude oil trading on the market?
1、 The degree of market competition and openness is high, the information of supply and demand is sufficient, and the spot market is developed;
2、 The economic system is relatively open, and there is no strict price and import and export control;
3、 The financial market in the region where the futures exchange is located is open, and the currency of futures price can be freely convertible under the capital account;
4、 The laws and regulations of the country or region where the futures market is located are sound and effective.
Due to the imperfect market system, there are many examples that affect the establishment and development of futures market. For example, in early 1993, the former Shanghai oil exchange successfully launched oil futures trading.
At that time, China's oil circulation system did not realize real marketization, and the emergence of oil futures market was also a flash in the pan, and finally withdrew from the historical stage. Although some big oil producing countries in the Middle East have abundant oil resources, they have not established oil futures market, which is related to the lack of mature market economy system.