SHCH Launched Shanghai Emission Allowance Forward Trading and CCP Clearing
On December 19th. 2016, SHCH started the trail operation of Shanghai Emission Allowance Forward (SHEAF) CCP Clearing, which was officially launched on January 12th. 2017. The Launching Ceremony was successfully held in Shanghai. Mr. PAN Gongsheng, member of the CPC PBC Committee and Deputy Governor of PBC, and Mr. ZHOU Bo, member of the Standing Committee of the CPC Shanghai Municipal Committee and Vice Mayor of Shanghai attended the Ceremony and delivered speeches.
Mr. PAN Gongsheng stated in his speech that, “As a market-oriented institutional arrangement, finance plays an important role in promoting environmental protection and ecological construction. Combination of finance and ecological protection has been deepened and widened. China always attaches high importance to the green development and the construction of green finance system. Green development is one of the five development concepts put forward at the 5th Plenary Session of the 18th CPC Central Committee. Last year (2016), PBC issued guiding opinions on constructing green finance system in collaboration with relevant ministries and commissions, with the aim of constructing a complete green finance policy system and a multi-level green finance market system. In this context, PBC has actively guides SHCH in facilitating the construction of a united clearing and custody system for carbon emission market, in deepening the study on innovation and risk management regarding carbon emission derivatives, and in carrying on development and research on CCP clearing service focusing on RMB carbon emission derivatives. The successful launching of this CCP clearing service will not only fill the blank in China's green finance market and satisfy real economy's needs, but also promote regulated and innovative development of carbon emission market and green finance market. ”
Mr. PAN Gongsheng also pointed out that, “PBC would continue supporting SHCH in conducting research and development on carbon emission derivatives and green finance derivatives. PBC hopes that SHCH would manage risks effectively, to guarantee the safe, quality and efficient operation of CCP clearing service; at the same time, continuously enrich product categories and make good preparation for the launch of national carbon emission market, to better serve and facilitate China's green finance development. ”
Mr. ZHOU Bo emphasized in his speech that, “the official launching of SHEAF CCP Clearing service is of great significance for the innovative development of China's green finance and the construction of Shanghai international financial center. As an innovation in China's green finance field, this service will strongly push the development of carbon emission market, serve the adjustment of industrial structure, and promote the transformation and upgrading of economy; it will contribute to guiding enterprises in energy saving and emission reduction, developing low-carbon economy, and promoting construction of ecological civilization, and will finally be good for further enriching financial market system and enhancing the function of Shanghai international financial center.”
On January 12th. 2017, SHCH' s commodity derivatives CCP clearing platform operated smoothly, and cleared 9 SHEAF transactions with the unilateral amount of 123,000 tons of Shanghai emission allowances (3.644 million RMB), covering February, May, August, November contracts. At the end of that day, the open interest is 60,000 tons of Shanghai emission allowances. The first group of clearing members were China Construction Bank Corporation, Shanghai Pudong Development Bank Co., Ltd, CITIC Securities Co., Ltd and Guotai Junan Securities Co., Ltd.