China’s Shanghai International Energy Exchange (INE) published rules for the low-sulphur fuel oil (LSFO) futures on Wednesday, according to the exchange’s website.
The new futures contract, which will be launched on June 22, will be traded at 10 tonnes per lot, according to the Shanghai bourse.
The INE, a subsidiary of the Shanghai Futures Exchange, said daily price limits of LSFO futures are at 5% from the settlement price of the previous trading session and the minimum trading margin is 8% of the contract value.
The launch of LSFO futures will help with companies’ risk management in the industry and build a “low-carbon, safe and highly efficient energy system”, the Shanghai Futures Exchange said in a statement.
(Reporting by Min Zhang and Emily Chow, editing by Louise Heavens)