On January 20, Shanghai Futures Exchange (“SHFE”) issued the SHFE Administrative Measures on Commodity Swaps Business, providing for matters related to the commodity swaps business, including the market participants, the service activities and the risk management issues. The Measures provide institutional guarantee for the smooth and steady operation of the commodity swaps business.

W&B’s team provided full legal services for SHFE’s said commodity swaps business project. As a latest development in derivatives trading, commodity swaps business lacks regulation under mature legislation in China. To demonstrate feasibility and compliance of the project, W&B’s team, relying on the domestic and overseas experience, the trends in financial supervision and administration and the nature of commodity swaps, and combining the project design for the commodity swaps business, demonstrated said feasibility and compliance from various perspectives including business model, business procedure, market participants and risk control measures, and assisted SHFE in drafting the agreement group files applicable between SHFE and service participants. The project is led by W&B’s partner Cathy Wu and jointly completed by her team members Jialong Chen, Qi Zhu and Xin He.