Economic Daily: Jiang Yan of Shanghai Futures Exchange: Enlightenment from "0" to "1" in the internationalization of futures markets

China's capital market is steadily opening up, especially the internationalization of the futures market, which plays an important role in promoting a new round of high-level opening-up. Recently, on the occasion of the 16th Shanghai Derivatives Market Forum, a reporter from Economic Daily interviewed Jiang Yan, Secretary of the Party Committee and Chairman of the Shanghai Futures Exchange, on the hot issues of internationalization of crude oil futures and futures markets.

Chinese Voice in International Market

Reporter: 2018 is the first year of internationalization of China's futures market. A milestone is the listing of crude oil futures in Shanghai International Energy Exchange. Since listing for more than a year, the achievements of crude oil futures have attracted worldwide attention. What successful experiences have been accumulated in the internationalization of crude oil futures?

Jiang Yan: Thank you for your interview. The listing of Shanghai crude oil futures is an important measure to implement Xi Jinping's socialist thought with Chinese characteristics in the new era and the spirit of the Nineteenth National Congress of the CPC.

Over the past year since the listing of crude oil futures, we have summarized it as "four most":

The most intuitive market performance;

The most core function play;

The most challenging international exploration;

The most important thing is to guard against and mitigate risks.

From the most intuitive market performance, first, INE crude oil futures and WTI, Brent prices have formed a good interaction, which not only reflects the international trend, but also out of our own relatively unique market trend, reflecting the impact of China's crude oil futures prices. Second, our trading volume has been the third largest in the world, and our position level is also significantly higher than that of other international crude oil futures markets in the early stage of development. Third, market participation is active and enthusiastic. The participation of domestic and foreign enterprises, traders, investment companies and individuals highlights the characteristics of diversification. At the same time, the proportion of corporate positions is nearly 70%, which is far higher than the average level of domestic varieties.

From the point of view of the core function, since the listing of crude oil futures, the number of industrial users of hedging and delivery has increased. Domestic enterprises and transnational corporations have signed long-term contracts and spot contracts with Shanghai crude oil futures prices, and many international quotation agencies have begun to publish the market information of crude oil futures in China. This shows that, firstly, the basic role of crude oil price in resource allocation in the previous period has been reflected, and real enterprises have hedging tools to avoid price fluctuation risks; secondly, the acceptance of China's crude oil futures price as a pricing benchmark is increasing, reflecting the formation of the price system of supply-demand relationship in China's and Asia-Pacific oil market, and in the international oil market "Chinese voice" is gradually reflected.

In terms of the most challenging international exploration, the listing of crude oil futures is not only a product innovation, but also an open measure. We have successfully completed the international platform, net price trading, bonded delivery, RMB valuation system design model, which has been accepted by the vast number of domestic and foreign investors and recognized globally. For example, the number of overseas accounts has more than doubled compared with the initial stage of listing. Many international institutions have paid close attention to us and made an objective and fair analysis. In particular, in promoting the construction of Shanghai's international financial center, Shanghai rose from sixth to fifth place in the global financial center ranking in 2018.

In terms of risk prevention and mitigation, we firmly adhere to the bottom line of non-systemic risk. Over the past year, we have established and perfected a set of wind control system for internationalized varieties with Chinese characteristics.

Persistence in International Exploration

Reporter: The market has always been a focus of attention. How can we achieve an effective balance between Chinese characteristics and international practices?

Jiang Yan: The internationalization of INE crude oil futures not only embodies the control of risks through marketization and legalization, but also embodies Chinese characteristics. First, the design of the system conforms to China's national conditions. For example, in terms of contract design, wind control system, transaction code, margin, rise and fall board, position and so on, they all embody Chinese characteristics. Crude oil futures are the first futures to accept the participation of foreign investors, and are priced in CHY, showing Chinese characteristics. Overseas institutions have held about 20% of their positions in the past year. This shows that the design of RMB valuation system is acceptable to foreign investors. In view of the characteristics of the International Platform, we have also made some positive innovations and explorations. Firstly, we have formulated measures for dealer appropriateness management. The next step is to simplify the procedures and procedures for opening accounts for foreign investors. The second is to establish a linkage monitoring mechanism between overseas and previous energy prices. Third, through the establishment of market maker system and other measures to enhance the continuity of active contracts, out of the last crude oil price curve. However, it should be noted that market development is not achieved overnight, but will take a long time to make contributions. In order to promote the function of the crude oil futures market, we should also step by step, and we need a long-term dedication.

Internationalization calls for the introduction of Futures Law

Reporter: What kind of relationship do you understand between further opening up and risk prevention?

Jiang Yan: Risk prevention and opening up complement each other, that is to say, how strong the ability to manage risks is, how fast the opening up will be!

Another important aspect of risk prevention is to consolidate the legal basis for market development. Therefore, we should speed up the legislative process of Futures Law in order to better regulate the investment behavior of foreign investors. At the same time, internationalization should also take into account the risks brought by cross-border supervision, especially the requirements of cross-border supervision for human capacity enhancement.

Reproduction of Crude Oil Futures Policy and Promotion of No.20 Rubber

Reporter: The news from this forum is that the second international product, No.20 Rubber, will be launched in accordance with the rules and regulations of crude oil futures in the SHFE. Could you tell me something about it?

Jiangyan: No.20 Rubber is the second internationalized variety in SHFE. It is precisely because the system and design of crude oil futures have been approved by foreign investors that we have introduced No.20 Rubber and adopted the system design mode of crude oil.

No. 20 Rubber is an important basic raw material for tire industry. China is the No. 1 importer and consumer of No.20 Rubber, and its main source of imports is Southeast Asian countries such as Thailand, Indonesia and Malaysia. The development of No. 20 rubber futures is the specific action of the "one belt and one road" initiative. As a specific open variety, it can provide price risk management tools for "going out" rubber industry chain enterprises, play the basic role of price in resource allocation, help enterprises lock in costs, keep profits, and help China's natural rubber industry to reach the world-class level.

In the next step, we will actively promote the internationalization of existing varieties while increasing the internationalization of varieties. For example, the six major basic metal products we have now have the conditions for internationalization. For this reason, we have chosen more mature varieties to explore internationalization. The goal is to achieve the effect of 1 + 1 > 2 and serve the global real economy.

Establishment of First-class International Exchange

Reporter: This year marks the 70th anniversary of the founding of the People's Republic of China and the 20th anniversary of the founding of SHFE. SHFE proposed "building an international first-class exchange". In the field of internationalization, what is the next focus of SHFE?

Jiang Yan: It is 20 years since its establishment. It can be said that in last 20 years SHFE have gone through the development process from small to large, from weak to strong. According to the statistics of the American Futures Association, the volume of the SHFE has ranked first in the global commodity futures and options exchanges for three consecutive years (2016-2018). It can be said that SHFE has the conditions to take the lead. Therefore, in the process of internationalization of China's futures market, SHFE should play a role and make breakthroughs on the road of internationalization, so as to make due contributions to the opening up of the futures market. This is also the requirement of building world-class exchanges. For this reason, we should insist on planning the future with the world's vision, establishing rules with international standards, highlighting characteristics with local advantages, and making steady progress in the journey of realizing world-class exchanges. Specifically, through the optimization of the system, we should vigorously attract more foreign investors to participate, and make the existing market more open to the outside world, so that we can have more friends, so that our prices can be used easily.

上期所姜岩：期市国际化从“0”到“1” 的启示
中国资本市场加大开放蹄疾步稳，期货市场国际化是其中耀眼一笔，为推动新一轮高水平对外开放发挥着重要作用。日前，在第16届上海衍生品市场论坛召开之际，就原油期货以及期货市场国际化的热点问题，经济日报记者专访上海期货交易所党委书记、理事长姜岩。
国际市场中的“中国声音”逐渐体现
记者：2018年是中国期货市场国际化的元年，一个里程碑就是上海期货交易所子公司上海国际能源交易中心的原油期货上市。上市一年多以来，原油期货成绩举世瞩目。请问在国际化方面，原油期货积累了哪些成功经验？
姜岩：谢谢您的采访。上海原油期货上市是深入贯彻落实习近平新时代中国特色社会主义思想和党的十九大精神的一个重要举措。
原油期货上市一年来，我们总结归纳为“四个最”：
最直观的市场表现；
最核心的功能发挥；
最挑战的国际化探索；
最重要的防范化解风险。

从最直观的市场运行表现看，一是上期原油期货与WTI、布伦特的价格形成了良好的互动，既体现出国际大趋势，也走出了我们自身相对独特的行情走势，反映了中国原油期货价格的影响力。二是我们的成交量已稳居全球第三，持仓水平也显著高于国际其他原油期货市场发展初期的水平。三是市场参与积极踊跃，境内外企业、贸易商、投资公司和个人等各类投资者参与凸显出多元化的特点，同时法人持仓占比近七成，远高于国内品种的平均水平。
从最核心的功能发挥情况看，原油期货上市以来，套保和交割的产业用户日趋增多，已有国内企业与跨国公司用上海原油期货价格签署了长期合同和现货合同，多个国际报价机构也开始发布我国原油期货的行情信息。这表明，一是上期原油的价格在资源配置中的基础作用得到了体现，实体企业有了套期保值、规避价格波动风险的工具；二是中国原油期货价格作为定价基准的接受程度在不断上升，反映了中国和亚太地区石油市场供需关系的价格体系正在形成，国际石油市场中的“中国声音”逐步体现。
在最挑战的国际化探索方面，原油期货的上市不仅是一个产品创新，同时也是一个开放举措。我们较好完成了国际平台、净价交易，保税交割，人民币计价的制度设计模式，得到了广大境内外投资者的接受和全球的公认。比如，境外开户数量较上市初期增长了2倍多，多个国际机构都对我们高度关注并进行了客观公正的分析。特别要指出的是，在推动上海国际金融中心建设方面，2018年上海在全球金融中心排名从第6名上升至第5位。
防范化解风险方面，我们牢牢守住不发生系统性风险的底线，一年多来，我们建立健全了具有中国特色的国际化品种的一套风控体系。
国际化探索要久久为功
记者：市场有一个始终关注的热点，中国特色和国际惯例如何做到一个有效的均衡？
姜岩：上期原油期货的国际化，既体现了通过市场化、法制化来管控风险，同时也体现了中国特色。一是制度的设计符合中国的国情。比如说在合约设计、风控制度、交易编码、保证金、涨跌板、持仓等这些制度上，都是体现了中国特色。原油期货是第一个接受境外投资者参与的期货品种，并且以人民币计价，彰显出中国特色。运行一年以来，境外机构持仓量占到百分之二十左右的份额。这说明了人民币计价这种制度设计是境外投资者是接受的。针对“国际平台”的特点，我们还进行了一些积极创新和探索。一是制定了交易者适当性管理办法，下一步将在简化境外投资者的开户程序和流程等方面做改进。二是建立境外与上期能源价格的联动监测机制。三是通过建立做市商制度等措施，提升活跃合约的连续性，走出上期原油的价格曲线。但是，应该看到，市场发展不是一蹴而就，还要久久为功。在促进原油期货市场功能的发挥上，也要循序渐进，需要有久久为功的定力。
国际化呼唤期货法早日推出
记者：进一步对外开放和防范风险之间，您理解是个什么样的关系？
姜岩：防风险与对外开放之间是相辅相成，也就是说，防控风险的能力有多强，对外开放就有多快！
防风险还有一个重要方面，就是要夯实市场发展的法制化建设基础。 为此，要加快《期货法》立法的进程，以更好地规制境外投资者的投资行为。与此同时，国际化还要考虑到跨境监管带来的风险，特别是跨境监管对人才能力提升的要求。
复制原油期货政策推出20号胶
记者：此次论坛传出消息，上期所将按原油期货的规则制度推出第二个国际化品种20号胶。请您介绍一下相关情况。
姜岩：20号胶是上期所第二个国际化的品种。正是因为我们原油期货的制度和设计得到了境外投资者的认可，所以我们推出20号胶，也采取原油的这种制度设计模式。
20号胶是轮胎产业的重要基础原料。我国是20号胶第一大进口国和消费国，主要进口来源是泰国、印度尼西亚和马来西亚等“一带一路”沿线东南亚国家。开发20号胶期货是上期所服务“一带一路”倡议的具体行动。20号胶期货作为特定开放品种，可为“走出去”的橡胶产业链企业提供价格风险管理的工具，发挥价格在资源配置中的基础作用，帮助企业锁定成本、守住利润，助力我国天然橡胶产业迈向世界一流水平。
下一步我们将在做大增量品种国际化的同时，积极地推进现有品种的国际化。比如说我们现在六大基础金属产品，都具备了国际化的条件。为此，我们已选择了比较成熟的品种，进行国际化探索，目标是实现1+1大于2的效果，为全球的实体经济服务。
建立国际一流交易所
记者：今年是新中国建国70周年，也是上期所成立20周年，上期所提出“建设国际一流的交易所”，请问在国际化方面，上期所下一步着力点有哪些？
姜岩：今年是上期所成立20年。这20年可以说上期所走过了从小到大，从弱到强发展历程。根据美国期货业协会（FIA）统计，上期所的成交量已连续三年（2016-2018）在全球商品类期货和期权交易所中排名第一。可以说，上期所已经具备了可以做率先领先事情的条件。 因此说，在中国期货市场走向国际化的进程中，上期所应该有所担当，在国际化道路上应该有所突破，为期货市场对外开放做出应有的贡献。这也是建设世界一流交易所的要求，为此，我们要坚持以世界眼光谋划未来，以国际标准建立规则，以本土优势彰显特色，在实现世界一流交易所的征程中行稳致远。 具体来说，要通过制度的优化，大力吸引境外投资者更多的参与，把现有市场对外开放的基础做得更大，让我们的朋友多多的，这样我们的价格才好用。