China Securities Regulatory Commission has approved the launch of methanol futures on the Zhengzhou Commodity Exchange, it said in a notice on its website Thursday.
No launch date was specified though Platts has reported earlier that it would be in the second half of October.
According to market sources, the ZCE will run system tests with its members on October 15 and 22.
The ZCE had initially planned to launch the contract in May/June, but that was delayed to mid-September as approval from relevant authorities was pending still at the time.
Methanol will trade under the symbol ME in yuan/mt on the ZCE for up to 12 months forward. The contract will have a tick size of Yuan 1/mt, Platts reported earlier. The smallest transaction volume allowed would be 50 mt, and the maximum daily price fluctuation limited to plus or minus 4% from the previous trading day's closing price.
The rollover day is the 20th of the month, and physical delivery is required two days after the contract's last trading day at a predetermined location.
The exchange already trades purified terephthalic acid futures contracts.
