June 05, 2017

BOC becomes deposit bank for crude oil traders

Bank of China is among the first few commercial banks to offer deposit services for crude oil futures margin of domestic traders at Shanghai International Energy Exchange, according to an announcement by the China Securities Regulatory Commission last week.

Shanghai International Energy Exchange is a derivative marketplace for crude oil, natural gas and petrochemical transactions. It also provides clearing, delivery, market information, and technology services.

Shanghai International Energy Exchange Corporation (INE) is fully funded by Shanghai Futures Exchange and Shanghai Futures Information Technology Company. It was registered in China (Shanghai) Pilot Free Trade Zone in November 2013.

The Bank of China signed a strategic cooperation agreement with the INE in March 2014 and has completed preparations for the launch of crude oil futures. The bank has business with half of the 21 overseas yuan-clearing banks and offers agent services to over 1,600 institutions around the world.