There are high expectations for derivatives trading in China. Some dealers already trade direct with Chinese entities onshore and there are hopes that the long-awaited start of a renminbi derivatives market will take place this year.

This may not happen if there is a change of heart by the Chinese authorities in the wake of China Aviation Oil's derivatives losses. However, traders do not expect it to cause a repeat of the last big commodity losses suffered by a Chinese company six years ago, when harsh punishments were meted out after transactions were reneged on because those executing them were unauthorised to do so.