Shanghai Futures Exchange – SHFE

The Shanghai Futures Exchange (SHFE) is one of five exchanges on mainland China, and the country’s largest commodities exchange in terms of volume. Established in 1998 and launching operations in 1999, the SHFE was created following the merger of three commodity exchanges in Shanghai, including the Shanghai Metal Exchange, the Shanghai Commodity Exchange, and the Shanghai Foodstuffs Commodity Exchange. Although overseen by the China Securities Regulatory Commission, the exchange itself is self-regulated.

The SHFE trades futures contracts in a range of metals and energy commodities, including gold, fuel oil, lead, copper, steel rebar and wire rod, aluminium, zinc, and natural rubber. The latest contract to be made available from the Shanghai Futures Exchange was silver futures, which began trading in May 2012. The exchange is also considering entering into the crude oil futures market, and is expecting to begin trading by the end of 2012.

The exchange has over 200 members, with their primary customers being futures brokerage firms. Members and traders must be citizens of China, or registered in mainland China in the case of companies or organisations. The SHFE has established over 250 trading terminals throughout China, and all contracts must be physically delivered at these designated warehouses and delivery points. Trading is carried out entirely through electronic trading systems operated by the exchange, and is done in Chinese Renminbi. Trading hours are from 9:00 a.m. to 11:30 a.m. and 1:30 p.m. to 3:00 p.m., Shanghai time.

>> Read more about the other Commodity Trading Exchanges