Abstract: The price of May contract of WTI crude oil futures crashes on April 20, 2020 U.S. Eastern Time finally settled at USD-37.63/barrel. The negative crude oil price caused huge loss for some investors of the personal account crude oil product of Bank of China. This paper conducts a case study to analyze the financial innovation and risk management ability of commercial banks. Through carefully organizing the context of this event, we discuss the problems in product properties, product design, regulation, risk management, hedge strategy, and risks in financial derivatives market. We try to learn some lessons from this event to improve the competitiveness of Chinese financial institutions and improve China' financial regulatory system and regulatory methods. Under the background of opening Chinese financial market, this study has important practical value.

Key words: negative crude oil price, personal account crude oil product, financial innovation, risk management, financial regulation