Shanghai Gold Exchange looks to trade gold futures through derivatives

The Shanghai Gold Exchange is looking to trade gold and silver futures through derivatives trading, the Shanghai Daily reports.

In a "milestone move", chairman Shen Xiangrong said the bourse already has the approval of China's central bank to trade gold and silver futures, and will submit an application to the China Securities Regulatory Commission once the bank approves the relevant rules.

"The introduction of futures products on the gold exchange is a must for the bourse as it moves to offer investors the option of derivatives trading," said Shen.

Staff at the exchange, which is the only gold bourse in the country, have already been trained on derivatives trading.

The gold exchange may team up with the futures exchange to trade gold futures, and gold bonds, gold ETFs, precious metals index futures and gold buy-back could be offered as products.

Other developments could see Shanghai Gold Exchange teaming up with commercial banks in order to trade the precious metal for retail investors.