The agreement is one of a number of MoUs the SHFE has signed with international futures exchanges. A similar deal was made with the London Metal Exchange in May, while the Chicago Mercantile Exchange signed one with the Shanghai exchange in March 2003.
The SHFE is the product of three futures exchanges that merged in 1999, and has three major products: copper cathode, aluminium and natural rubber.
“As the world becomes a seamless market-place, the convergence of key trading centres for physical commodities will become essential to market participants,” says Mitchell Steinhause, chairman of Nymex.
“Before the listing of fuel oil futures on SHFE, the signing of this MoU with Nymex will help promote the development of futures trading on large-size commodities, such as energy, in China,” says Jiang Yang, chief executive of SHFE.