Recently, China Securities Regulatory Commission (CSRC) has released a circular that confirmed Nickel Futures and Options of Shanghai Futures Exchange (SHFE) to be Specified Domestic Products, and approved Shanghai International Energy Exchange (INE) to register TSR20, Low Sulfur Fuel Oil and Bonded Copper Options as Specified Domestic Products. Nickel futures will be the first duty-paid non-ferrous metal futures product on SHFE that is directly opened to global investors, and INE will have full coverage of options on corresponding mature futures products with the listing of three new options. This marked a key step in SHFE’s internationalization efforts, and also an important measure in serving China’s opening up initiative and enhancing the pricing benchmarks of key commodities. 

As SHFE’s first Specified Product, nickel has important strategic significance in industrial development, and is an indispensable base metal material for developing emerging industries. China is the world's largest nickel consumer and importer, and the second largest nickel producer. Such solid industrial foundation provides strong support for the opening of the nickel futures market. Since its launch in 2015, SHFE’s nickel futures market has been well-functioning, with high correlation between futures and spot prices. SHFE’s nickel futures price has become important price reference in domestic physical trades, and is widely used by many industrial enterprises in risk management and trade activities. 

The opening of nickel futures and options not only aligns with the long-term demand of industrial enterprises and associations, but will also help improve the risk management level of China’s non-ferrous metal industry and facilitate its upgrade into a modern industrial system. Meanwhile, it will attract more domestic and overseas market participants to engage in the price formation process and use our tools for risk management and global asset allocation. On a larger dimension, it will promote global nickel industries to enhance the price discovery mechanism, and hence increase the stability and resilience of the global nickel industrial chain while enhancing the global reach of “Shanghai Price”. 

To ensure the smooth opening of these products, the internationalized version of SHFE’s rulebook officially came into effect on August 8, 2025. With the key tone of strengthening regulation, preventing risks, and promoting quality development of the futures market, this new rulebook consists of 34 internationalized business rules covering 5 major areas, including market access, trading, clearing, risk management and delivery. It forms a safe, standard and predictable rule system with Chinese characteristics but also aligned with international standards, thus laying a solid foundation for the opening up of China’s futures market.  

In addition, INE has launched TSR20, low sulfur fuel oil and bonded copper futures since 2019, all of which are Specified Products that are directly opened to overseas investors. After years of development, these three futures products have gradually become important hedging tools for relevant industrial enterprises. The launch of corresponding options on these products will diversify the risk management tools for enterprises, which is conducive for them to conduct  granular and customized hedging activities, enhance their capacity in sound operation and sustained growth, and further expand the global influence and servicing competence of China’s futures market. 

Currently, SHFE is working steadily to prepare for the opening of nickel futures and options as well as TSR20, low sulfur fuel oil and bonded copper options, said relevant executive from SHFE. Moving forward, SHFE will further enrich the offering of international products, and improve the operational quality and functioning of the futures market. Meanwhile, SHFE will, through a series of measures such as optimizing its business rules, strengthening market cultivation, deepening two-way opening-up, and reinforcing technical safeguards, attract various domestic and overseas market participants, continue to open the futures market, serve the development of the real economy, and steadily move towards the goal of building a "world-class exchange".