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The Shanghai Futures Exchange has officially opened nickel futures and options trading to international traders and qualified foreign investors, marking the first time these financial instruments have been made available to the global market on this exchange.
One of the first foreign intermediary firms to participate was JP Morgan Futures, which engaged soon after the launch of nickel futures and options trading on the platform.
Additionally, the exchange’s subsidiary, Shanghai International Energy Exchange, introduced options for TSR 20 (Technically Specified Rubber 20) and Bonded Copper, opening them to overseas investors on the same day.
“We’ve seen significant interest from global investors, with many inquiries coming in,” stated Pan Feng, chairman and general manager of JP Morgan Futures. “They view this launch of internationally accessible products as a positive development that signals closer integration between Chinese markets and the rest of the world. Many are eager to trade through these international channels.”
An executive familiar with the exchange explained that internationalizing nickel futures and options, by allowing foreign investor participation, will diversify the market structure further. “The prices formed will reflect not just domestic supply and demand but also incorporate global investors’ expectations and insights,” the source added.
The simultaneous debut of TSR 20 and Bonded Copper options is seen as a move to accelerate the development of other mature derivatives on the Shanghai International Energy Exchange. Industry experts believe this will broaden hedging options for firms, improve operational stability, and strengthen the overall function of the futures market.
Cao Yanwen, deputy director of the Financial Commission Office of Shanghai’s Municipal Committee of the Communist Party, emphasized that these initiatives will attract more international investors. The move is expected to foster greater openness of existing product ranges, support Shanghai’s ambition to become a top-tier global exchange, and reinforce its standing in the international bulk commodity market. Cao also confirmed that the city will continue to promote the internationalization of these products and introduce new trading options.
Wang Jian, vice president of the China Nonferrous Metals Industry Association, commented that the internationalization of nickel futures and options, along with the launch of Bonded Copper options, will enhance the derivatives market infrastructure. These steps are aimed at better integrating domestic and international markets, assisting companies in managing price volatility, and ensuring stable operations.
The expansion of nickel futures and options to an international audience, together with the rollouts of TSR 20 and Bonded Copper options, directly addresses the risk management needs of industrial firms and aligns with broader sector expectations, according to Fu Xiangsheng, vice president of the China Petroleum and Chemical Industry Federation.
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