SGE to Launch NYAuTN Contract, a Cooperative Project with CME Group

Date: 2019-09-12

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In May 2019, Shanghai Gold Exchange (SGE) and CME Group signed a bilateral product licensing agreement. According to the agreement, SGE licenses CME Group to use the Shanghai Gold Benchmark Price to develop futures contracts. And CME grants SGE a license to launch new T+N product based on COMEX Gold Futures Asia Spot Price. On October 14th, 2019, SGE will launch new T+N contract based on COMEX Gold Futures Asia Spot Price. At the same time, CME Group will launch Shanghai Gold futures contracts based on Shanghai Gold Benchmark Price.

The new T+N contract to be launched by SGE is denominated in RMB with a contract size of 100 g and RMB conversion price of COMEX Gold Futures Asia Spot Price as its final settlement price. The Shanghai Gold Futures Contracts to be launched by CME Group are denominated in CNH and USD respectively. The contract sizes are both 1 kg, and the final settlement prices will be the Shanghai Gold Benchmark Price in the afternoon session on the settlement day.

In recent years, under the guidance of the national opening-up strategy, SGE actively carried out market-oriented and internationalization strategy. With the international board acting as the platform and "Shanghai Gold Benchmark" serving as an effective means, SGE consistently promotes cross-market cooperation with major international financial centers. The cooperation between SGE and CME Group this time is an in-depth cooperation between the world’s largest physical gold market and the futures market. It will effectively motivate cooperation and integration between domestic and foreign gold markets, and provide convenience for both overseas institutions to participate in domestic financial market with CNH and domestic investors to indirectly invest in the international market with CNY. The cooperation also effectively enhances the global influence of the RMB-denominated gold price and intensifies the international voice of China's gold market, contributing to the internationalization of RMB and building Shanghai into an international financial center.

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