Shanghai International Energy Exchange inks agreement of strategic cooperation with DBS Bank
INE and DBS will leverage their respective strengths and business resources to collaborate in areas such as settlement, risk management, international client servicing and product innovation. The strategic partnership symbolises a firm step forward in INE’s development of an efficient, equitable and safe international energy futures exchange market to boost the internationalisation of China’s futures exchange market.
At the signing ceremony, Chu Juehai, President and CEO, Shanghai International Energy Exchange Limited said, "With the shift in the demand-supply equilibrium of the global energy market, Asia Pacific has become an important spot energy market, prompting the need to develop an influential energy futures exchange and pricing market. INE strives to develop an efficient, equitable and safe international energy derivatives trading platform to form an Asia Pacific pricing centre which is linked to the European and American markets to facilitate 24 hours trading for risk management. This will ensure the healthy development of Asia Pacific economies and to facilitate efficient and timely pricing risk management by global investors. INE and DBS can collaborate on multiple aspects and levels to boost the opening up of China's futures exchange market and accelerate its internationalisation."
Neil Ge, CEO of DBS Bank (China) said: “DBS is deeply honoured to be INE’s first foreign bank partner to support the development of China’s energy futures exchange market. Through this partnership, DBS endeavours to leverage its extensive international market experience and resources to support INE to develop a more robust international energy futures exchange market in China. To meet the specialised needs of commodities clients across the region, DBS has professional teams in Singapore, Hong Kong, Shanghai and London offering a full range of commodities financing, including customised trade financing, cash and risk management solutions and we strive to provide comprehensive financial services to INE’s clients and corporates.”
The INE, established in November last year, will handle energy futures trading within the pilot Shanghai Free Trade Zone (FTZ). It will have the largest market capitalisation within the FTZ. It is the fifth national futures exchange approved by the China Securities Regulatory Commission.
About Shanghai International Energy Exchange The Shanghai International Energy Exchange Limited, or INE, is a global exchange that operates regulated derivative marketplaces in crude oil, natural gas and other petrochemical products and provides clearing, delivery, information distribution and technology services.
Approved by the China Securities Regulatory Commission, INE is fully funded by the Shanghai Futures Exchange and the Shanghai Futures Information Technology Company. It was registered in the China (Shanghai) Pilot Free Trade Zone on November 6th, 2013. As a self-regulated entity, INE discharges its duties pursuant to the Company Law and the Regulation on The Administration of Futures Trading.
In the principles of internationalisation, market-orientation, institutionalisation and specialisation, INE will establish an international energy derivatives market platform in an open, fair and equitable manner to objectively reflect the energy supply-demand equilibrium of the Asia-Pacific region, make the regional energy market more effective in the global market system, provide instruments in price discovery, risk management and asset management for the oil industry and global participants and optimise the allocation of energy resources.
About DBS China DBS Bank (China) Limited (DBS China) is a subsidiary of DBS, one of Asia’s leading financial services group. Formerly the Development Bank of Singapore, DBS opened its first representative office in Beijing in 1993 and was among the first group of foreign banks and the first Singapore bank to incorporate in China in May 2007. Since then, DBS China has rapidly expanded its franchise across the country, currently operating out of 10 branches and 21 sub-branches and has more than doubled its staff strength to over 2,300. DBS China’s business focuses are institutional banking, global transaction services, treasury and markets, SME banking as well as consumer banking targeting the affluent segments.
DBS China is among the first batch of financial institutions and one of the first two foreign banks, to obtain approval for setting up an outlet in the FTZ on 29 September 2013; and is also among the first batch of foreign banks to receive operational approval for the Shanghai FTZ outlet on 31 December 2013. On 7 January 2014, DBS China’s Shanghai Pilot Free Trade Zone Sub-branch became the first foreign bank to open for business.
China is one of DBS’ key priority markets. The strengths of our franchise in China have been recognised by esteemed regional and local media, government bodies and industry associations such as Global Finance (Stars of China: Best Small Business Lending & Best Retail Bank, 2013).
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About DBS
DBS - Living, Breathing Asia
DBS is a leading financial services group in Asia, with over 250 branches across 17 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest in Asia-Pacific. DBS has been recognised for its leadership in the region, having been named “Asia’s Best Bank” by The Banker, a member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global Finance. The bank has also been named “Safest Bank in Asia” by Global Finance for six consecutive years from 2009 to 2014.
DBS provides a full range of services in consumer, SME and corporate banking activities across Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. These market insights and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 21,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com