Shanghai, 23 March 2011: Reuters

China's securities regulator said on Tuesday it had granted approval to the Dalian Commodity Exchange to launch coke futures, the latest commodity derivative to be launched in the country.

The announcement, released by the China Securities Regulatory Commission (CSRC) on its website, confirmed a Reuters source-based report last week.

The CSRC said it would leave it to Dalian Commodity Exchange, one of four futures exchanges in the country, to decide on the launch date of coke futures.

The Dalian Commodity Exchange has targeted to start trading the product in mid-April, the source had said. Coke, which is derived from coking coal, is used to produce steel. China is the world's top coke producer and exporter.

The trading of metallurgical coke futures will help provide a hedging tool, particularly for Chinese steelmakers to hedge some of their production costs.

The regulatory approval for the coke futures came hot on the heels of the Shanghai Futures Exchange's plan to officially start trading of lead futures from March 24.

Currently, futures products traded on the Dalian Commodity Exchange -- the largest agricultural commodity exchange in Asia -- include corn, soybean, soybean meal, soybean oil, and RBD palm olein.

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