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On November 26, the inaugural comprehensive ranking of global futures exchanges placed the Shanghai Futures Exchange (SHFE) as the second leading entity in the Asia-Pacific commodity sector, ranking just behind the Hong Kong Exchanges and Clearing.
This innovative ranking system, developed by a research team led by Zhang Jun, dean of the School of Economics at Fudan University and head of the China Center for Economic Studies, marks the first multi-dimensional quantitative evaluation of futures exchanges worldwide. It evaluates performance based on capacity, governance, and macroeconomic indicators, filling a significant gap in the field.
Leading the global rankings are the CME Group, based in Chicago; Intercontinental Exchange, located in Atlanta; and Hong Kong Exchanges and Clearing. Experts note that domestic exchanges are closing the gap with top international players as China’s commodity trading continues to grow.
A representative from BNP Paribas China’s Global Markets division highlighted SHFE’s strong position, noting that it is supported by the world’s largest industrial network. The exchange has secured the top global spot in trading volume and open interest for products closely linked to China’s economy, such as rebar and fuel oil, establishing a robust market foundation.
The BNP Paribas insider also compared SHFE’s risk management abilities favorably against the London Metal Exchange, especially during the nickel crisis. They observed that SHFE showed greater resilience and control during extreme market fluctuations, effectively maintaining order.
In March 2022, the London Metal Exchange experienced one of its most severe disruptions when nickel prices soared over 250% within two days, largely due to a significant short position held by Tsingshan Holding Group.
A representative from Freepoint Commodities, a U.S.-based trading firm, remarked that China’s crude oil futures offer global traders an opportunity for international entities to directly access the Chinese market.
Shi Chenghu, CEO of Bands Financial— a Hong Kong-based brokerage specializing in commodities and financial futures— cited a German company that utilizes container freight index futures to hedge logistics costs. He added that SHFE not only supports numerous Chinese industries expanding abroad but also serves enterprises in trading partner countries.
Looking forward, Freepoint expressed hope that SHFE will launch new products, including liquefied natural gas, naphtha, and green energy futures.
The BNP Paribas representative emphasized the importance for SHFE to broaden its product offerings to include agricultural commodities and foreign exchange derivatives, while also expanding cross-border services to maximize its potential.
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