Yuan Oil Futures to Start Trading

[jhungary]

No, China does not need to back the futures. that is the business between buyer and seller. Buyer and seller must have a future account, where they put collaterals equaling to the worth of the contracts they signed.

Not sure how they work in Germany (Assume this is where you work) and how the Chinese Future market, in the US, the Security Settlement is backed by Federal bank virtually in all transaction using Fedwire *** per Dodd-Frank act.

In Commodity Market, (such as New York Mercantile Exchange), the government regulate NYMEX with Commodity Future Trading Commission where their job is to maintain the financial integrity of a clearing process, and each company who trade in NYMEX would require to use Fedwire to settle their account if the settlement is over CFTC recommendation (Which over 90% of all trade and 423 trillions dollars of trade per year), in which Federal Bank will guarantee each transaction via Fedwire so the settlement is protected from abusing practices, fraud and manipulation.

I would think even US have this regulation body, China, which are even have closer control of their financial market would have equal or somewhat tighter regime.

 

[Adam WANG SHANGHAI MEGA]

Their's only 120 billions, but if you are talking about oil future trading, they are not just dealing with buying, but also selling, and also other countries and corporate will buy/sell oil using the Chinese Oil Future, which mean they are going to have to back a number more than 120 billions. And if they are doing a oil future for just 120 billions worth of business, then their oil future is doomed to begin with. Consider this, US OPEC recycle rate (is at 1250 billions (1.25 trillions) annually in 2015/2016....120 billions is nothing and won't change anything.

You still not aware of the conundrum, if the amount is too small and China can absorb easily, that won't be able to change anything. But if that is too big, then China cannot digest it and basically it will bring down Chinese Economy.

Also, domestic US consumption is the biggest debtor to the US National Treasure Bond, China accounted for 1.2 trillions out of the 21 trillions the American are owing at no time US National Debt are depending on the Chinese. And until the day the world stop using USD to trade, USD will continue issue bond to foreign nation, and as I stated, the only way now this could happen is either have another world war and we build the world financial system on a different currency, or the world issue a global currency the world would use, but that have to have US support.



No.

To do what you said, you need EVEYR COUNTRY using the shanghai oil future to use RMB to do everything (Not just buy oil). They will buy your oil (Which China does not produce much for foreign use) in RMB and you trade it back with other currency. But Saudi Arabia will use their Riyal, Nigeria will use their Naira, Russia will use their Rupee. And even if they uses RMB for everything, where does those RMB come from? They would be from China Central bank, unless you allow Saudi, Russia or Nigeria to print RMB in their country.

The thing is, they don't, you can probably ask Russia to do that (But with their broken economy, how much they can sustain in this rate?) And if China import more than export, then regardless what the other do, China have to back the RMB used in the Trade and I want to know where these money comes from?

Money cannot be printed without a recycling process, So either they will need to have extra RMB China print and exchanged somehow or China have to print more money to back the whole future, or taking an easy way is to use a 3rd currency as a sort of escrow, guess what, that is what the Chinese Government are doing, and they are using USD.

it depends on how far. China economic strength goes! if China is number 1 in economy, the rest of the world has no choice, such as HUAWEI wit h its advanced 5G tech, whatever US lines are, what they can protect is their backward techs, and with or without US market, HUAWEI and ZTE.with it's advanced 5G tech, will dominate a big amount of 5G communication market!

US should fear HUAWEI coz HUAWEI is technology and customer oriented!

 

[Viet]

Not sure how they work in Germany (Assume this is where you work) and how the Chinese Future market, in the US, the Security Settlement is backed by Federal bank virtually in all transaction using Fedwire *** per Dodd-Frank act.

In Commodity Market, (such as New York Mercantile Exchange), the government regulate NYMEX with Commodity Future Trading Commission where their job is to maintain the financial integrity of a clearing process, and each company who trade in NYMEX would require to use Fedwire to settle their account if the settlement is over CFTC recommendation (Which over 90% of all trade and 423 trillions dollars of trade per year), in which Federal Bank will guarantee each transaction via Fedwire so the settlement is protected from abusing practices, fraud and manipulation.

I would think even US have this regulation body, China, which are even have closer control of their financial market would have equal or somewhat tighter regime.

It’s impossible for a country even if it is rich to guarantee the future contracts the traders signed between them on the stock exchange. It is simply because the sum is huge. Very huge. Usually multiple times of a country’s GDP. But why should the government guarantee the win or loss of speculants?

A future exchange usually demands traders to open colleterals account in addition to money account. That makes sure every trader will fulfill the contract be buying or selling a commodity for a predefined price at a predetermined time. A clearinghouse or Clearer jumps in for settlement when contracts expire. But again no government is involved.

Of course every government should guarantee the savings, so does Germany, but not the money of future traders. How can the US central bank guarantee 423 trillion USD future contracts?

 

[jhungary]

It’s impossible for a country even if it is rich to guarantee the future contracts the traders signed between them on the stock exchange. It is simply because the sum is huge. Very huge. Usually multiple times of a country’s GDP. But why should the government guarantee the win or loss of speculants?

A future exchange usually demands traders to open colleterals account in addition to money account. That makes sure every trader will fulfill the contract be buying or selling a commodity for a predefined price at a predetermined time. A clearinghouse or Clearer jumps in for settlement when contracts expire. But again no government is involved.

Of course every government should guarantee the savings, so does Germany, but not the money of future traders. How can the US central bank guarantee 423 trillion USD future contracts?

Well, I am not too sure how that work because A have not touch anything remotely related to economy since maybe my MIB degree a few years ago.

All that I know and learn is that almost all trade settlement went thru Fedwire which their mission statement states the value is over 423 trillions dollars per year, and that Fedwire is guaranteed by Federal Reserve Bank. I guess what they mean is to guarantee each transaction when they made (T+3 maybe), not in a whole year, so you don't guarantee all 423 trillions USD at the same time. But I reckon at any one point they are managing somewhere 10 to 20 trillions dollars transaction, and that is the money federal bank have to have at any one time in their piggy bank.

I mean, it does make sense because once the trade is settled, there are no need for guarantee anymore. And the fed can simply release that funding to fund another transaction. But as I said, I am not sure how that work, it wasn't touch on that deep in my course. I can ask my sister in law If you want, she is a chartered accountant.

And fedwire not just for future, but all securities trading.

it depends on how far. China economic strength goes! if China is number 1 in economy, the rest of the world has no choice, such as HUAWEI wit h its advanced 5G tech, whatever US lines are, what they can protect is their backward techs, and with or without US market, HUAWEI and ZTE.with it's advanced 5G tech, will dominate a big amount of 5G communication market!

US should fear HUAWEI coz HUAWEI is technology and customer oriented!

Currency market is not exactly like propriety tech, even with propriety tech, everyone can register their tech, be it AT&T, Samsung or Huawei, you may want to use Huawei in China, they may want to use Samsung in Korea it's everyone choice actually, not just because you are the only game in town, cause you never were.

More so in currency market. You have the US standard, which is tried and tested and has been in use since 1945. You may try to develop another eco-system, but unless that system is a lot better than the current US system, people won't change if they are the same. It won't change much even when China is number 1 powerhouse in economy. Unless the trading environment improve, Chinese system are not going to replace the American system

 

[Adam WANG SHANGHAI MEGA]

Well, I am not too sure how that work because A have not touch anything remotely related to economy since maybe my MIB degree a few years ago.

All that I know and learn is that almost all trade settlement went thru Fedwire which their mission statement states the value is over 423 trillions dollars per year, and that Fedwire is guaranteed by Federal Reserve Bank. I guess what they mean is to guarantee each transaction when they made (T+3 maybe), not in a whole year, so you don't guarantee all 423 trillions USD at the same time. But I reckon at any one point they are managing somewhere 10 to 20 trillions dollars transaction, and that is the money federal bank have to have at any one time in their piggy bank.

I mean, it does make sense because once the trade is settled, there are no need for guarantee anymore. And the fed can simply release that funding to fund another transaction. But as I said, I am not sure how that work, it wasn't touch on that deep in my course. I can ask my sister in law If you want, she is a chartered accountant.

And fedwire not just for future, but all securities trading.



Currency market is not exactly like propriety tech, even with propriety tech, everyone can register their tech, be it AT&T, Samsung or Huawei, you may want to use Huawei in China, they may want to use Samsung in Korea it's everyone choice actually, not just because you are the only game in town, cause you never were.

More so in currency market. You have the US standard, which is tried and tested and has been in use since 1945. You may try to develop another eco-system, but unless that system is a lot better than the current US system, people won't change if they are the same. It won't change much even when China is number 1 powerhouse in economy. Unless the trading environment improve, Chinese system are not going to replace the American system

We will see about that 15 years later!!!!!

Time is on China side.

 

[Adam WANG SHANGHAI MEGA]

The culture of Qing people and Korean people is almost the same. And language is similar.
Therefore, Qing history is Korean history. And 1st Emperor "Nurhaci" is Korean.(Goguryeo).

Qing history is Korean history. WOW idiot are everywhere！！
http://img0.imgtn.bdimg.com/it/u=1092765305,1403026977&fm=214&gp=0.jpg
Qing empire

and east blue one the affiliated country of the Qing Empire，Korea

 

[Dai Toruko]

Qing history is Korean history. WOW idiot are everywhere！！
http://img0.imgtn.bdimg.com/it/u=1092765305,1403026977&fm=214&gp=0.jpg
Qing empire

and east blue one the affiliated country of the Qing Empire，Korea

It is funny to see how this fact made Han Chinese so upset! lol

It is hard for Han people to accept their embarrassing history. I think China is home for many different races, NOT MINORITIES (I hate that word) through history. But today, the Han Chinese people think and try to make Chinese history as Han History. It is natural that every group has some ups and downs in history, and one should not think that his/her past is just glorious all the time. calm down, think realistic.

 

[Adam WANG SHANGHAI MEGA]

It is funny to see how this fact made Han Chinese so upset! lol

It is hard for Han people to accept their embarrassing history. I think China is home for many different races, NOT MINORITIES (I hate that word) through history. But today, the Han Chinese people think and try to make Chinese history as Han History. It is natural that every group has some ups and downs in history, and one should not think that his/her past is just glorious all the time. calm down, think realistic.

China is home for many different races.This sentence i agree.
The truth is 92% of chinese are han,that is also somethings you can not change.
And korea history is a history as a affiliated country to Qin dynasty,Han dynasty,Tang dynasty,to Song and Liao Dynasty,to Yuan dynasty ,to Ming dynasty and to Qing dynasty,and then to Jap empire and again nowdays to US empire!
The history of the Turks is the history of continuous killing and driving out of East Asia by the Chinese. It is not because the Chinese like to kill but because the ancestors of the Turks did not follow the rules. The Chinese Empire could no longer endure and finally decided to destroy Turkey power in east asia once for all. The Turks should feel grateful that the Chinese did not kill you all.

If Turkey continues not to abide by international rules, China’s two 10 million tons of hydrogen bombs can make you extinct from the Earth.

 

[Misay]

It is funny to see how this fact made Han Chinese so upset! lol

It is hard for Han people to accept their embarrassing history. I think China is home for many different races, NOT MINORITIES (I hate that word) through history. But today, the Han Chinese people think and try to make Chinese history as Han History. It is natural that every group has some ups and downs in history, and one should not think that his/her past is just glorious all the time. calm down, think realistic.

We slaughtered most of the manchus.The manchu population is now smaller than the Mongol population.LOL
If you let your enemy children spit on his ancestors.There is nothing to forgive.
The advantage of Turkish ancestors is that they run fast.Thank your ancestors for their cowardice.

 

[terranMarine]

The Turks weren't spared in the Korean War. Simply slaughtered by Chinese soldiers.