The P e Pract ctic ice of of and T Thou oughts on on th the S - - PowerPoint PPT Presentation
The P e Pract ctic ice of of and T Thou oughts on on th the S Synergy Between E Exchan ange-Traded ed a and O OTC Markets Mr. W Wang ng Zhe henyin ing, P Preside ident Sha hang nghai G Gold E d Excha hange June 10, 10,
Wang ng Zhe henyin ing, P Preside ident Sha hang nghai G Gold E d Excha hange June 10, 10, 2019 2019
An Overview o
ngha hai G Gold E d Excha hang nge
With the trend of gold moving from the west to the east and the development of China’s gold market, Shanghai Gold Exchange(SGE) has become one of the key global precious metals trading centers.
importer and consumer.
In 2018, China’s gold production registered 401 metric tons, topping the e world ld f for 12 12 consecutiv ive y years. In 2018, China consumed 1,151 metric tons of gold, rankin ing g the he first in the w world ld for 6 6 consecutiv ive y years.
12.3% 26.5 26.5%
China: 401 t 401 tons China: 1151 1151 tons Worl rld T Total: 4345 4345 tons Worl rld T Total: 4260 t 4260 tons
Trading Volume Product & Service Innovation International Cooperation
In 2018, annual turnover across all markets on aggregate reached ¥ ¥ 21. 21.32 t 32 trillio llion, with year-on-year growth of 9.20%. Go Gold T Tradin ing grew to 67, 67,500 500 metric ic t tons (+24.35% YOY) by volume and ¥ 18.30 trillion by turnover.
Bet etter er enabled ed t to s serve t e the r he real econo nomy a and nd optimize r e resource allocation i in 2 2018. 8.
products & services;
Advance c e coope peration with i inter ernational exchanges a es and p nd prec ecious s metals i ins nstitutions s such a as CME ME, L , LBMA, MO MOEX, e , etc. c.
A S Synergized ed Excha hang nge-Trade ded a d and O nd OTC Market
Platform
SGE actively exploring market development by adopting the market-driven and internationalization strategy.
Shangh ghai London
Excha hang nge-trade ded d Ma Mark rket OTC Ma Mark rket
New Yo York
Sy Synergized E d Excha hang nge- trade ded a d and O OTC M Market
In 2 2010, a a pattern f n featur uring ng T Two Excha hang nges and d One O OTC m market t took shape pe.
How t to f further er p promote e the e OTC d derivatives es market has since b e bec ecome t e the e focus f for market partici cipan ants.
The Fledgi ging Syner ergy gy bet etween een Exchange-traded ed and OT OTC Marke kets
01 01 02 02 03 03
Sha hang nghai G Gold E d Excha hange
In 2002, 2002, S SGE GE w was officia ially lly established a and i introduced p price matchin ing t g tradin ing m g mode. In 2004, 2004, S SGE GE l launched deferred tradin ing p product f for go gold w whic ich bec ecam ame t e the m e majo jor c contract i in exchange-traded ed m mar arket et.
Commer ercial B Banks
In 2004, 2004, commercia ial b banks s started
ing O g OTC g gold tradin ing s servic ices .
Shangha hai F Futur ures Excha hang nge
In 2008, 2008, SHF HFE i introduced g gold futures c contract.
SGE GE：To A Achieve G e Grea eater S Syner ergy gy b bet etween een t the e Exchange-traded ed a and OT OTC Markets a and Enhance M e Market F Functi tions, to to Build a a Wel ell- Regu gulated ed, O Open en, M Multi-tier ered ed M Marketplace
Six national ministries (including PBoC) jointly released the document of the e Gui uide deline on the P Promotion
hina na’s G Gold d Market.
ng t tradi ding ng contr tracts ts on a trial basis in 2011. SGE i int ntroduc uced d price a asking ng trading i in r respo sponse se to PB PBoC
In 2010 n 2010,
Exchange Trade System (CFETS) to launch inter-ba bank nk g gold bila ilateral t l transactio ion i in 2012 2012.
“Ope pen Pl Platform”
Diverse trading modes： price matching, price asking...
Excha hang nge- traded OT OTC
Multiple trading platforms: price matching trading platform, price asking trading platform, CFETS…
+
uilding ding a a Mul ulti-Leve vel Marke ket System
23 23 Hr. 3 . 30 m min. n. 2 B Board rds 6 M Marke kets
Main Board & International Board
Price Asking, Price Matching, Benchmark Pricing, Gold Coin, Gold ETF, Leasing By 2020, SGE’s price matching market and price asking market will cover the major gold trading hours globally.
Key ey H Highligh ghts ts
Bank & Enterprises
01 02 03 04 05 06 Go Gold Coin Marke ket Pr Price ce Ma Matchin ing g Marke ket Pr Price ce Askin ing g Marke ket Pr Price ce Fix ixin ing Marke ket Go Gold ETF TF Marke ket Leasin ing g Marke ket
Diversifying Produc duct O Offering ngs
Fully tapping into SGE’s core strength as a physical delivery hub by offering bespoke products and services to the upstream and downstream enterprises in gold sector A case in point, Bring in gold coin from the OTC market to the exchange-traded market.
45,646 22,872 17,692 10,236 2,799 978 206 148 2018 2017 2016 2015 2014 2013 2012 2011
SGE Price Asking Market Trading Volume（metric tons）
Promoting the standardization of OTC derivatives trading by attracting trading in OTC market to register and trade on SGE’s platform, and provide one-stop services from trading to clearing. In 2018, SGE’s price asking trading volume reached 45,646 tons.
panding ding M Market P Participa pants Base
260 260 domestic and international members Market makers for inter-bank price asking market: Continuously offer bid/ask bilateral prices Member er Customers rs 9. 9.98 98 mill illio ion Individual investors 12,046 046 Institutional investors Ma Mark rket Make ker Licensed currency brokerage institutions; Traditional OTC institutions such as Shanghai Gold Coin Company.
Bro rokera rage and OT OTC INST. T.
Covering domestic and oversea market participants from exchange-traded market and OTC market.
edium and nd long-te term Go Gold Forward Benchm hmark pri rice ce sy syst stem (with a maturity from 1 month, 3 months, 6 months and 1 year) in accordance with central bank's latest stability report.
licatio ion scen enarios of
Shanghai Go Gold”benchmar mark price into OT OTC der derivatives es and
“Sha hangha nghai G Gold” Bench chmar ark P Price
Promotin ing P Pric ice D Discovery
“Shanghai Gold Benchmark Price, the first RMB-dominated benchmark price trading contract in precious metals, serves as a barometer of international gold market in Asian trading hours.
Ove ver the he past 3 yea ears, go gold asking ng de deriv ivativ ives marke ket pr pric ice move ved in tande dem wit ith the he Shang ngha hai Gold Ben enchmark Pr Price.
Thoug ughts o
Synergy b bet etween en Excha hang nge-traded a ded and d OTC M C Mar arkets
Think f from M Market t Strati tificati tion a and Syner nergy’s P s Perspe spective work with all market participants to build a multi-level and full-service market system together rather than adopt a one-size-fits-all market mode to build a centralized market, Stay F Focused o sed on t the he Top-Lev evel el Des esig ign of
Gold
markets
the opp pportuni unity in Go Gold mar market：PBoC issued a set of rules on Gold deposits, gold assets, and Internet gold in 2018. Gold deposits, gold assets become a major on-and off-balance sheet items for financial institutions.
romote Exchange-tra raded marke ket and nd OT OTC ma market synchronously to to meet et marke ket demands nds: “People’s Gold” with“Shanghai Gold”Benchmark Price.