The Shanghai Petroleum Exchange (SPEX) on Wednesday started simulated operation, with participation of 55 traders.

In order to ensure a smooth going of the trial operation, SPEX has worked out simulated operation scheme and corresponding incentive schemes, and prepared varieties of products for transaction and listed prices. The trading products for the trial operation are set to be 180CST and 380CST fuel oil.

According to Chen Zhenping, general manager of SPEX, SPEX will mainly conduct long and medium-term contracts of futures trading in diversified forms and varieties of products.

The forms of transaction will include spot and futures transactions.

The spot transaction mainly covers oil and chemical products which are hardly to have standards, and the long and medium-term contracts of futures transactions will include standardized fuel oil products, such as 180CST and 380CST fuel oil.

SPEX, under the administration of the Shanghai Municipal Development and Reform Commission, is jointly founded by the Shanghai Long Union Group, the PetroChina International Co. Ltd., the Sinopec Sales Co. Ltd., the CNOOC Chemical Import and Export Co. Ltd. and the Sinochem International Oil Co., with a registered capital of 105 million yuan (about 13.1 million U.S. dollars). Shanghai Long Union has the controlling shares of SPEX. SPEX is registered in the Pudong New Area of Shanghai.

Source: Xinhua