Use the advantages of FTN accounts to deepen the opening up of futures markets

A reporter from the Futures Daily learned from the Shanghai Futures Exchange yesterday that, recently, Mercuriy Energy Trading Co., Ltd. and Foruibo Trading Singapore Co., Ltd., a subsidiary of the Shanghai Futures Exchange, successfully completed RMB-specific futures settlement accounts through the Shanghai Branch of Bank of China. (Referred to as NRA futures special account) and the free trade account of the same name (Free Trade Non-Resident, referred to as FTN account) two-way transfer of RMB funds.

In March 2018, China's first specific variety of crude oil futures opened to the outside world was successfully listed in INE. With the strong support of the Shanghai Headquarters of the People's Bank of China, INE actively explored the use of free trade accounts to provide foreign participants with exchange convenience and diversified financial services.

On September 3, 2021, the State Council issued the "Measures to Promote the Reform and Innovation of Trade and Investment Facilitation in Pilot Free Trade Zones", proposing to speed up the introduction of foreign traders to participate in futures transactions, and give full play to the functions of the Pilot Free Trade Zone in terms of financial services. It improves the level of opening up of the bulk commodity futures market, and builds an international bulk commodity futures market denominated and settled in RMB.

On October 25, the Cross-border Financial Services Professional Committee of the Shanghai Institute of Finance issued the "Guidelines for Inter-bank Free Trade Account Business Operations (Second Edition)" to further facilitate the cross-"front-line" settlement of free trade accounts. The funds in the RMB NRA account can be exchanged with the FTN account of the same name.

As a result, overseas participants in INE can use futures products to exchange RMB funds between the NRA futures account and the FTN account of the same name, realize exchange convenience through the FTN account, and enjoy various financial services provided by the bank.

Specifically: First, the multi-currency foreign exchange derivatives services provided by domestic banks can be used through FTN accounts to meet the exchange rate hedging needs.

The second is to independently handle currency exchange through FTN accounts, reduce exchange costs, and expand the available foreign exchange currencies.

Foreign participants can choose RMB as the profit currency on the market, transfer RMB funds from the NRA futures account to their FTN account with the same name when necessary, and independently process profitable foreign exchange through the bank as needed;

It is also possible to transfer foreign exchange funds from overseas to FTN accounts, and transfer them to the special RMB NRA futures account after self-settlement of foreign exchange as needed, and participate in international futures trading in RMB.

As long as it is a currency supported by the FTN account opening bank, foreign participants can use it, and it is not limited to the foreign exchange currency accepted by INE as the futures margin.

Third, it is possible to fully enjoy the reform and innovation policies of trade and investment facilitation in the pilot free trade zone and various financial services provided by domestic banks.

Jinwen Wang, general manager of the Commodity Business Department of Bank of China Shanghai Branch, said that overseas participants of international futures products could only settle and purchase foreign exchange with banks through futures companies.

Now, foreign institutional participants of INE can realize exchange convenience through FTN accounts. In addition to 9 commonly used currencies such as the US dollar, the euro, and the British pound, the Bank of China FTN account exchange service can also support more than 20 currencies such as the Korean won, the UAE dirham, and the Swiss franc.

At the same time, Bank of China can provide foreign exchange derivatives services such as forward settlement and sale of foreign exchange, foreign exchange swaps, foreign exchange options, currency interest rate swaps through FTN accounts, and comprehensively utilize a variety of value-preserving products to design risk management plans for customers and support customers to identify market directions, seize the trading opportunity to achieve the goal of value preservation and hedging.

At present, INE has listed five international varieties of crude oil, NR20 low-sulfur fuel oil, international copper futures and crude oil options. Investor structure and overseas participation have been continuously optimized, and market functions have been gradually brought into play.

INE stated that in the next step, it will make full use of the country’s policy advantages in Pudong New Area’s high-level reform and opening up and promote the reform and innovation of trade and investment facilitation in the Pilot Free Trade Zone, provide better services for global industry chain enterprises and professional investment institutions to participate in China's domestic futures market for risk management.

发挥FTN账户优势 深化期市对外开放

期货日报记者昨日从上期所了解到，近日，上期所子公司上期能源境外机构客户摩科瑞能源贸易有限公司、复瑞渤商贸新加坡有限公司，通过中国银行上海分行成功办理了人民币专用期货结算账户（简称NRA期货专户）与同名自由贸易账户（Free Trade Non-Resident，简称FTN账户）之间人民币资金的双向划转业务。

2018年3月，我国首个对外开放的特定品种原油期货在上期能源成功上市。在中国人民银行上海总部大力支持下，上期能源积极探索通过自由贸易账户为境外参与者提供汇兑便利和多元化金融服务。

2021年9月3日，国务院印发《关于推进自由贸易试验区贸易投资便利化改革创新的若干措施》，提出加快引入境外交易者参与期货交易，发挥自贸试验区在金融服务等方面的功能，提升大宗商品期货市场对外开放水平，建设以人民币计价、结算的国际大宗商品期货市场。

10月25日，上海市金融学会跨境金融服务专业委员会发布《自由贸易账户业务同业操作指引（第二版）》，进一步便利自由贸易账户跨“一线”结算，人民币NRA账户内资金可与同名FTN账户双向互通。

由此，上期能源国际化期货品种的境外参与者可以运用NRA期货专户与同名FTN账户人民币资金的双向互通，通过FTN账户实现汇兑便利，并可享用银行提供的各类金融服务。

具体来看：一是可以通过FTN账户使用境内银行提供的多币种外汇衍生品服务，满足汇率避险需求。

二是可以通过FTN账户自主办理货币兑换，降低汇兑成本，并拓展可用外汇币种。

境外参与者可以在场内选择人民币作为盈利货币，需要时将人民币资金从NRA期货专户划入其同名FTN账户，按需自主通过银行办理盈收购汇；

也可以从境外汇入外汇资金到FTN账户，按需自主结汇后划入人民币NRA期货专户，以人民币形式参与国际化品种期货交易。

只要是FTN账户开户银行支持办理汇兑的货币，境外参与者都可以使用，不受限于上期能源接受作为期货保证金的外汇币种。

三是可以充分享用自由贸易试验区贸易投资便利化改革创新政策和境内银行提供的各类金融服务。

中国银行上海市分行大宗商品业务部总经理王谨文表示，国际化期货品种的境外参与者原先只能通过期货公司向银行办理结汇与购汇。

现在，上期能源的境外机构参与者可以通过FTN账户实现汇兑便利。除美元、欧元、英镑等9种常用货币外，中国银行FTN账户汇兑服务还可支持韩元、阿联酋迪拉姆、瑞士法郎等20多种货币。

同时，中国银行可以通过FTN账户提供远期结售汇、外汇掉期、外汇期权、货币利率掉期等外汇衍生品服务，综合利用多种保值产品为客户设计风险管理方案，支持客户辨识市场方向，把握交易时机，达到保值避险目标。

目前，上期能源已上市原油、20号胶、低硫燃料油、国际铜期货和原油期权5个国际化品种，投资者结构、境外参与度持续优化，市场功能逐步发挥。

上期能源表示，下一步，将充分运用国家给予浦东新区高水平改革开放和推进自由贸易试验区贸易投资便利化改革创新的政策优势，为全球产业链企业和专业投资机构参与我国境内期货市场进行风险管理提供更好的服务。