On May 11th, 2017, Shanghai Futures Exchange’s official website issued ‘the Notice on Shanghai International Energy Exchange Center Releasing Crude Oil Futures Business Rules’, and officially released the ‘Shanghai International Energy Exchange Center Charter’, ‘Shanghai International Energy Trading Center Trading Rules ‘and 11 related business rules. At the same time, the subsidiary Shanghai International Energy Exchange Center issued the crude oil futures business rules. Notice said the next step in Shanghai Futures Exchange will actively support the energy center to carry out the preparatory work before crude oil futures listed.

    In recent years, with the preparatory work of the crude oil futures, crude oil futures work is in an orderly manner. Meanwhile, Shanghai Futures Exchange also announced the followings.

    ‘Shanghai International Energy Exchange Center Charter’ and ‘Shanghai International Energy Exchange Center Trading Rules’ were passed by Shanghai International Energy Exchange Center shareholders meeting and approved by China Securities Regulatory Commission, so they were released.

     ‘Shanghai International Energy Exchange Center Transaction Rules’, ‘Shanghai International Energy Exchange Center Settlement Rules’, ‘Shanghai International Energy Exchange Center Delivery Rules’, ‘Shanghai International Energy Exchange Center Risk Control Management Rules’, ‘Shanghai International Energy Exchange Center Member Management Rules’, ‘Shanghai International Energy Exchange Center Foreign Participant Management Rules’, Shanghai International Energy Exchange Center Trader Appropriateness Management Rules’, ‘Shanghai International Energy Exchange Center Information Management Rules’, Shanghai International Energy Exchange Center Assigned Deposit Bank Management Rules’, Shanghai International Energy Exchange Center Violation Handling Implementing Rules’, and ‘Shanghai International Energy Exchange Center Crude Oil Futures Standard Contract’ were passed by Shanghai International Energy Exchange Center shareholders meeting and approved by China Securities Regulatory Commission, so they were released.

    The above charters, trading rules and business rules go into effect on the date of promulgation.

    Under the relevant state ministries and commissions’ policy support, crude oil futures implement the way of domestic and foreign funds to achieve the domestic market and global market integration. First, it should make full use of RMB cross-border use, foreign exchange management and other financial innovation policies, and crude oil futures is valuated in RMB and accepts foreign exchange as a cash deposit to use. Second, it provides a direct and indirect way to facilitate foreign investors to participate in crude oil futures transaction. Third, it is clear of the energy center of the central opponent position, to ensure the smooth operation of the market.

    It has been discussed for five years around the topic of China's crude oil futures. In 1993, due to lack of management system, over speculation and other reasons, China's crude oil futures were forced to shut down. After 9 years later, in March 2012, China State Council issued a document ‘Promote Crude Oil and Other Commodity Futures and Bond Futures Market Construction’, marking China's crude oil futures was once again on the agenda, but the whole process was rather slow. In November 2013, Shanghai International Energy Exchange Center was incorporated in the China (Shanghai) Free Trade Experimental Zone, which undertook the main task of developing and controlling the listing of crude oil futures. In December 2014, Shanghai International Energy Exchange Center initially identified the crude oil futures delivery depot, mainly in China's coastal areas. In March 2015, Shanghai International Energy Exchange Center’s member management rules and trading rules (draft) were issued. However, China's crude oil futures were delayed this year. On the one hand, because the global economy is at low ebb and is not conducive to futures investment activities; on the other hand, China's economy steps into a slowdown and is not conducive to the introduction of futures, so it has been stranded.

    In 2016, China's total imports of crude oil reached 381 million mt, up by 13.56% year on year, setting a highest record, and the external dependence reached 66%, an increase of 5 percentage points YoY. Since the second half of 2014, crude oil prices began to slip and were in the range of $30-50/bbl for a long-term, thus promoting China crude oil imports one after another peak. In 2017, promoted by the oil-producing countries’ output cut, the international oil prices rose to $50-57/bbl, so that the advantages of crude oil imports continue to shrink. Once the global crude oil market recovery, or after U.S. abolishing the ‘Dodd Frank Act’, there will be a lot of speculative funds into the crude oil futures market, when crude oil prices will be once again into the era of high prices. China's inevitable ‘energy price security’ crisis awareness will once again heat up, so to seek a higher voice in the crude oil pricing market and to create an international influential oil and gas trading center are the most important, while the pace of crude oil futures will also be further accelerated.