China News Agency, Beijing, April 22 (Reporter Wei Xi) The US WTI crude oil May futures contract fell to an unprecedented negative $ 40, causing some "paper crude" products in China to fall into trouble. The Bank of China issued a statement on the evening of the 22nd, responding to the "crude oil treasure" business that aroused great concern from all parties.
Bank of China launched the "Crude Oil" product in January 2018 to provide domestic customers with trading services linked to overseas crude oil futures. Customers make their own trading decisions. Among them, the US crude oil varieties linked to CME's first contract of WTI crude oil futures. Individual customers must submit a 100% deposit for "Crude Oil Treasure" and do not allow leveraged trading.
According to the agreement and announced in advance, April 20 is the last trading day of the May contract of Crude Oil US crude oil, and the trading deadline is 22 o'clock Beijing time. In the early hours of April 21st, Beijing time, WTI crude oil futures May contract prices fell sharply, falling to an unprecedented minimum negative $ 40. The settlement price announced on the day was negative $ 37.63, the first negative settlement price since the listing of the Chicago Mercantile Exchange Group WTI crude oil futures contract.
Bank of China's statement on the 22nd stated that in order to exclude the situation where the negative settlement price on the day was due to abnormalities such as system failures of the exchange system, BOC actively contacted the Chicago Mercantile Exchange and market participants to verify, so the suspension of U.S. oil The contract of crude oil products trading for one day did not affect the customer's rights and interests.
At present, the main participants will still settle with reference to the settlement price according to the exchange rules. Bank of China has completed the expiry of the May contract based on prior agreement.
Bank of China said that for crude oil products, when the market price is not negative, the long position will not trigger a forced liquidation. For those who have determined to enter the position shift or due to the settlement of the difference, the client will complete the due treatment at the settlement price, and will no longer mark the market or liquidate. (Finish)