The Shanghai Clearing House will officially launch central counterparty clearing business for RMB container swaps and the China coastal coal forward freight agreement in December, the Xinhua-run cnstock.com reported on Tuesday.
On Monday, the Shanghai Clearing House signed an agreement with the Shanghai Shipping Exchange, under which the clearing house will use indexes of the shipping exchange as final settlement underlying assets of the above central counterparty clearing business. RMB container swap is an over-the-counter shipping derivative instrument priced, cleared and settled in RMB, which takes the Shanghai export container freight as the underlying asset and adopts cash delivery.
The China coastal coal forward freight agreement is an over-the-counter shipping derivative instrument priced, cleared and settled in RMB, which takes China coastal coal freight as the underlying asset and adopts cash delivery. The two sides' cooperation is to help shipping enterprises hedge against freight fluctuation risks, enhance influence of China's shipping index in the shipping market at home and abroad, promote development of the RMB shipping derivative market, and enrich varieties in the shipping financial factor market, said industry insiders.
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