(Yicai) April 22 -- The Shanghai Futures Exchange has opened nickel futures and options to overseas traders and qualified foreign investors, making them the first futures and options listed on the exchange opened to global markets.

JP Morgan Futures became one of the first foreign intermediary institutions to participate after the trading of nickel futures and options on the SHFE started today, Yicai learned.

In addition, SHFE's subsidiary Shanghai International Energy Exchange also listed the TSR 20, or Technically Specified Rubber 20, and Bonded Copper options for trading to overseas traders and qualified foreign investors on the same day.

"We have noticed a clear interest from global investors, receiving many inquiries from such clients," said Pan Feng, chairman and general manager of JP Morgan Futures. "They see the launch of this internationalized product as a positive signal of further connectivity between the Chinese and global markets, so they look forward to trade via international channels."

"Internationalizing the nickel futures and options, by introducing overseas investors, will further diversify the market structure," a relevant executive from SHFE previously said. "The resulting prices will not only reflect domestic supply and demand but also incorporate the expectations and judgments of global investors."

"The simultaneous listing of the TSR 20 and Bonded Copper options will help accelerate the comprehensive coverage of mature products' options on the Shanghai International Energy Exchange," noted an industry insider. "This will further enrich the risk management toolbox, support firms in conducting refined and personalized hedging operations, enhance their operational stability, and benefit the functionality of the futures market."

The listing of the TSR 20 and Bonded Copper options, along with the internationalization of nickel futures and options, will attract more international investors, Cao Yanwen, deputy director of the Shanghai Municipal Committee of the Communist Party of China's Financial Commission Office, said yesterday.

The move will help expand the openness of existing varieties, accelerate the SHFE's goal of becoming a world-class exchange, and reinforce Shanghai's position in the global bulk commodity market, Cao noted, adding that the city will continue to support the internationalization of the exchange's products and the listing of new varieties.

According to Wang Jian, vice president of the China Nonferrous Metals Industry Association, the internationalization of nickel futures and options, as well as the listing of Bonded Copper options, will help improve the derivatives market system, better integrate domestic and global markets and resources, assist companies in managing price fluctuation risks, and support stable operations.

The internationalization of nickel futures and options, along with the listing of TSR 20 and Bonded Copper options, precisely addresses the risk management needs of industrial enterprises and aligns with the collective expectations of the sector, said Fu Xiangsheng, VP of the China Petroleum and Chemical Industry Federation.

Editor: Martin Kadiev