(Yicai Global) Jan. 12 -- China has given overseas traders access to futures and options on edible oil and oilseeds less than a month after opening up the country’s soybean derivatives market.

Foreign traders can deal in rapeseed oil, rapeseed meal, and peanut kernel futures and options contracts on Zhengzhou Commodity Exchange from today. US dollars can be used as margins.

The move will improve the quality of futures market operations, meet the hedging needs of companies, and safeguard the security of domestic oil and oilseed supply, the person in charge of the exchange said.

Market participants believe it can attract overseas traders because of good liquidity and a fair and transparent market environment, gradually forming an international trade model with Chinese futures as a price reference that enhances their influence at the global level.

China began promoting the internationalization of futures in 2018. Since then, a wide range of commodities, including crude oil, pure terephthalic acid, and iron ore, have been made accessible to overseas traders. After four years of steady operation, the country has a mature opening model and systems and rules for trading, settlement, and risk control.

China is the world's second-largest producer, importer, and consumer of rapeseed oil, rapeseed meal, and the largest for peanuts. From 2021 to 2022, its production and consumption of rapeseed oil and rapeseed meal accounted for more than 20 percent of the global total, while that of peanuts made up over 35 percent.

Editor: Futura Costaglione