At present, Shanghai International Energy Exchange has officially authorized Industrial Bank (IB) as the designated depository bank providing deposit custody business for domestic clients of the exchange and its members. If so, IB has obtained all business licenses for the depository banks of all the five major futures exchanges.
Shanghai International Energy Exchange is an international trading market for global traders established and funded in November 2013 by Shanghai Futures Exchange with the approval from China Securities Regulatory Commission (CSRC). Its establishment will greatly help our country earn the voice on the pricing of international crude oil, guarantee the safety of international crude oil and promote the globalization of Chinese RMB. In addition, it facilitates the marketization reform of the petroleum industry, and provides risk management tools for overseas and domestic enterprises along the industrial chain of petroleum as well as all kinds of investors. The approval for this designation of depository bank represents that Shanghai International Energy Exchange is now in the late stage of opening.
For years, IB has accelerated its pace towards a light bank, sped up the construction of a settlement-based, investment-based and transaction-based bank, greatly developed FICC business (fixed income, currencies and commodities) and settlement business. Since 2013, IB has obtained the qualification for futures deposit custody business granted by five major futures exchanges of China (other four exchanges include China Financial Futures Exchange, Shanghai Futures Exchange, Dalian Commodity Exchange and Zhengzhou Commodity Exchange), and successively released collateral of warehouse receipts, hedging financing and many other financing-typed products. While strengthening the service for the entity economy, IB also expands the footprint of the futures market and has harvested honors such as excellent depository bank of exchanges.
In order to better conduct futures business, IB has established a futures settlement system composed of the head office, branch offices and sub-branch offices, fully standardized the operation flow of futures business, internal control and risk management system, and applied unified operation maintenance to the futures business system as one of the important systems of the bank. IB has provided secure and efficient deposit settlement and payment service for exchange members participating in futures trading. By the end of 2016, the deposit balance of futures of IB has outreached RMB 70 billion; the daily amount settled by the exchange exceeded RMB 5 billion; 132 futures company have had cooperation relationship with IB and 93 of them have been connected on line. The bank-futures transfer amount reached accumulatively RMB 150 billion in 2016.