Based on the huge risk brought about by the fluctuation of oil futures prices, both Bank of China and China Construction Bank have issued announcements to suspend new open trades in paper crude oil contracts.
In the morning of April 22, the Bank of China announced that, in view of the current market risks and delivery risks, the Bank of China suspended customer crude oil treasure from April 22 ( (Including American Oil and British Oil) new open trades, and the closed trades of clients holding positions are not affected.
Official introduction of BOC stated that crude oil treasure refers to the trading products linked to domestic and foreign crude oil futures contracts issued by the Bank of China to individual customers. Products and British crude oil products. The benchmark for US crude oil is the “WTI Crude Oil Futures Contract” and the benchmark for British crude oil is the “Brent Crude Oil Futures Contract”, both of which are denominated in US dollars (USD) and Renminbi (CNY). As a market maker, Bank of China provides quotations and conducts risk management. Individual customers open a corresponding comprehensive margin account at the Bank of China, sign an agreement, and deposit a full margin to realize the two-way selection of crude oil trading tools for long and short. Individual customers must submit a 100% deposit for “Crude Oil Treasure” and do not allow leveraged trading.
Crude oil treasure is also commonly known as “paper crude oil”. Apart from Bank of China, among the large state-owned banks, the Industrial and Commercial Bank of China and the China Construction Bank all carry out similar businesses.
That is, on the evening of April 22, China Construction Bank also issued an announcement that, in view of the current price risk and liquidity risk and other factors, according to the “China Construction Bank personal According to the relevant provisions of the Account Commodity Trading Business Agreement, from the time of the announcement, the opening of trading of the monthly contract of the account crude Brent and the account crude WTI varieties will be suspended, and the closing transaction of the holding customer will not be affected.
However, as of now, ICBC, which also owns the paper crude oil business, has not made any announcement.
In the early hours of April 21st, WTI May crude oil futures fell all the way to a negative value, and the official settlement price of CME closed at -37.63 USD / barrel. Affected by this, the Bank of China crude oil product US crude oil contract was suspended on April 21st, and finally settled at the effective price of the WTI crude oil May futures contract CME official settlement price-37.63 US dollars / barrel. This means that investors will bear up to nearly three times the loss, the principal loss is also lost.
Comparable, except for Bank of China, Industrial and Commercial Bank of China and China Construction Bank have basically completed a week agoRelocation work, although investors also caused some losses in the relocation, but compared with crude oil treasure’s “through the warehouse” is already “escaped.”