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According to sources, China—the world’s largest oil buyer—is preparing to launch their first domestic futures market for trading. The country is preparing to launch its own yuan-based oil futures contract, a move set to shake up the 96 million barrel-per-day global crude market, which is currently dominated by trading in London and New York.

A unit of the Shanghai Futures Exchange, also known as the Shanghai International Energy Exchange, will allow Chinese buyers to lock in oil prices and pay in local currency (RMB). A recent article by Bloomberg delves into when trading will begin, why it is important for China, how oil futures work, and more!

To view the full article click here.