Chinese clampdown on HFT may hinder new oil contract

Foreign firms may avoid Shanghai crude futures, some participants warn

shanghaifuturesexchange
Shanghai Futures Exchange is one of the three commodity exchanges ordered to tighten rules around automated trading

Moves by Chinese authorities to tighten restrictions on high-frequency trading (HFT) may undermine the country's much-anticipated launch of a new crude oil futures contract that Beijing hopes will serve as an oil price benchmark for the Asia-Pacific region, market participants say.

China's regulatory climate has chilled in recent months as its stock markets have collapsed, prompting a series of government interventions that have eroded liquidity on venues such as the China Financial Futures

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