Core Viewpoint - The development of the Shanghai International Financial Center is closely linked to the growth of the derivatives market, which plays a crucial role in enhancing China's financial system's internationalization and security [1]. Group 1: Derivatives Trading as a Core Driver - Derivatives trading is a key pillar of international financial centers, with Shanghai's futures exchange achieving a trading volume of 6 billion contracts in 2024, accounting for 18% of global commodity derivatives trading [2]. - The average daily trading volume of Shanghai crude oil futures exceeded 500,000 contracts, significantly enhancing Shanghai's pricing influence in the Asia-Pacific region [2]. - The "Shanghai Gold" benchmark has become the second-largest global gold pricing benchmark, with a participation rate of 25% [2]. - In 2024, the trading volume of interest rate swaps in the Shanghai interbank market reached 45 trillion yuan, effectively helping enterprises manage interest rate volatility risks [2]. Group 2: Development Environment for the Derivatives Market - The construction of the Shanghai International Financial Center provides a favorable environment for the derivatives market, with a 40% year-on-year increase in derivatives trading volume in the free trade zone in 2024 [3]. - The Shanghai Clearing House has achieved T+0 cross-border clearing for RMB derivatives, improving efficiency by 50% [3]. - Tax incentives have attracted international asset management institutions, and talent programs have led to a net inflow of over 10,000 professionals in derivatives [3]. Group 3: Interaction Between RMB Internationalization and Derivatives Development - The linkage between offshore and onshore derivatives markets resulted in a cross-border RMB derivatives trading volume of 12 trillion yuan in 2024, making RMB the fifth-largest currency for derivatives trading globally [4]. - The integration of commodity derivatives with industrial finance has created an ecosystem that significantly reduces costs for enterprises [4]. - The green finance derivatives market is thriving, with the Shanghai Environment and Energy Exchange aiming for a scale of over 1 trillion yuan by 2025 [4]. Group 4: Strategic Positioning for Financial Security and International Influence - The derivatives market plays a dual role in financial security and the construction of international financial centers, with enterprises using derivatives to hedge against cost fluctuations [5]. - Innovations in dynamic margin management have enhanced risk prevention levels [5]. - The increase in derivatives trading volume can significantly enhance the global competitiveness of financial centers, with Shanghai aiming to improve its global financial center ranking through derivatives innovation [5]. Group 5: Existing Gaps and Future Directions - Compared to mature international markets like New York and London, China's derivatives market has differences in regulatory frameworks, regulatory focus, cross-border regulation, and margin financing for derivatives trading [6]. - The need for continuous exploration in regulatory coordination and market openness is emphasized to promote the collaborative development of the derivatives market and the Shanghai International Financial Center [6]. Group 6: Four Dimensions to Promote the Internationalization of the Derivatives Market - There is a need to deepen cross-border regulatory cooperation while maintaining risk prevention, gradually transitioning to a mixed regulatory framework to enhance market efficiency and international competitiveness [12]. - Prioritizing the development of entity-related derivatives and establishing innovation laboratories to ensure new products are adequately tested before market introduction [13]. - Accelerating the internationalization of infrastructure, with the Shanghai Clearing House aiming to connect with international standards and achieve real-time connections with Euroclear by 2027 [14]. - Focusing on the development of derivatives tools that meet enterprise risk hedging needs and encouraging international investor participation to enhance market internationalization [16].