Thu, Feb 11, 2016
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Regulatory more

Indian regulator Sebi sets up panel for commodity market

Posted on 26 January 2016 by VRS  |  Email |Print

The Securities and Exchange Board of India, now also the regulator for commodity derivatives, has set up an advisory committee for the commodity market. It will be chaired by Ramesh Chand, member, NITI Aayog. On it are Sameer Shah, managing director, National Commodity & Derivatives Exchange and P K Singhal, joint MD at Multi Commodity Exchange of India.
Two senior officials of Sebi are on it, as are Vijay Sardana, a commodity expert, Gopal Krishna Nayak from the Indian Institute of Management at Bengaluru, and one G Chandrashekhar, said a source. The role of the committee is to discuss issues relating to regulations and development of commodity markets and suggest required measures to the Sebi………………………………………..Full Article: Source

Indian Regulator Allows Defunct Commodity Exchanges to Exit From Bourse Business

Posted on 12 January 2016 by VRS  |  Email |Print

Markets regulator Sebi on Monday allowed defunct commodity exchanges to exit the business if no trading has taken place for more than a year. The Securities and Exchange Board of India (Sebi), in a circular, also said national commodity bourses will have to continuously meet the turnover criteria of Rs 1,000 crore per annum.
Regional commodity exchange will have to ensure that they have at least five per cent of the nation-wide market share of the commodity, which is principally traded on their platform………………………………………..Full Article: Source

Fed Move Adds to Pressure on Commodities

Posted on 18 December 2015 by VRS  |  Email |Print

As global financial markets from equities to bonds rallied on the back of the U.S. decision to raise interest rates, most commodities bucked the trend after the Federal Reserve compounded their long-term woes.
Rock-bottom rates had helped stoke the commodities boom as investors hunted for yield and companies tapped cheap money to vastly expand production. Now commodities markets are suffering, with the new rate-cycle adding to a multitude of industry-specific problems—a toxic combination of oversupply and tepid demand growth from a slowing Chinese economy………………………………………..Full Article: Source

Indian regulator Sebi to chalk out exit route for commodity exchanges

Posted on 18 December 2015 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) will soon spell out exit route for commodity exchanges. The move will pave the way for closure of defunct ones to apply for voluntary exits. At present, there are 12 commodities exchanges, of which six are nationalised,while the rest is regional.
If an exchange is not working for a year or has annual trading turnover on its platform of less than Rs 1,000 crore will be asked to wind-up,sources said. Some exchanges is learnt to have asked Sebi for voluntary exit. Former commodities market regulator Forward Markets Commission (FMC) had also suggested some names to the government as it did not have the power to derecognise any exchange………………………………………..Full Article: Source

Will slumping commodity prices derail the Fed’s rate-hike strategy?

Posted on 15 December 2015 by VRS  |  Email |Print

The commodities rout continues ahead of an historic Federal Reserve meeting this week. With the central bank widely expected to raise rates for the first time in 10 years, commodity prices are not co-operating, falling to multi-year lows.
Crude oil futures fell for a seventh straight session on Monday, their longest losing streak since mid-2014, on growing fears that the global oil glut would worsen in the months to come in a pricing wars between key producers. Natural gas prices also tumbled to 14-year lows………………………………………..Full Article: Source

Sebi puts in place software testing norms for commodities market

Posted on 14 December 2015 by VRS  |  Email |Print

To prevent possible manipulation, Sebi has made it compulsory for commodity brokers and traders to get their trading systems as well as software tools tested in consultation with the exchanges. Sebi’s guidelines related to testing of software and trading systems are already applicable for stock exchanges and would now be applicable for commodity bourses.
Commodity markets have come under the regulatory ambit of Sebi following the merger of Forward Markets Commission (FMC) with the capital market watchdog in September. Since new software or changes to the existing software without proper testing may affect the integrity of the markets, the regulator said the guidelines are being made applicable to commodity markets also, Sebi said in a circular………………………………………..Full Article: Source

China lifts imports of some key commodities

Posted on 09 December 2015 by VRS  |  Email |Print

Chinese imports of some key commodities including copper, iron-ore and coal rose month-over-month in November, but that failed to alleviate the negative price sentiment surrounding metals because of concerns about a broader slowdown in the world’s second-largest economy.
China’s steel exports slowed during the month, underscoring the global lack of buyers for a glut of supplies that has been weighing on prices of the metal as well as the main steel-making resource, iron ore. The country’s imports of copper rose month-over-month by 9.5 per cent to 460,000 tons, while iron-ore imports rose 8.75 per cent to 82.13 million tons during the same month………………………………………..Full Article: Source

Gold market bets on a slow Fed

Posted on 07 December 2015 by VRS  |  Email |Print

Gold prices hit a low of $1046.4/ounce on Thursday, but ended the week at $1,086/ounce with a gain of 2.7 per cent, thanks to the US jobs report. Data on Friday showed that the US non-farm payrolls increased by 211,000 in November. October’s increase was also revised upwards to 298,000 from 271,000. This set the mood for a rate hike.
But given the reaction in gold and the dollar market on Friday, it looks as though the market is pricing in a slow pace of rate hikes after the first one expected this month. On Friday, the US dollar index gained just 0.7 per cent but gold jumped up 2.3 per cent………………………………………..Full Article: Source

Fed rate hike to hit commodities-linked firms, economies

Posted on 03 December 2015 by VRS  |  Email |Print

Companies and countries whose fortunes are tied to commodities could see their borrowing costs climb as an interest rate increase by the U.S. Federal Reserve exacerbates the impact of lower raw material prices, top asset manager Schroders warned on Wednesday.
“Tighter dollar liquidity is going to put quite a lot of pressure on companies who survived the last year with commodities prices having fallen,” chief economist and strategist for Schroders, Keith Wade, told CNBC’s “Street Signs” on Wednesday. “As they look into next year, they are going to be asking themselves: are commodities prices going to recover, are our banks going to continue to fund this if dollar liquidity is tightening? … The answers to those questions might be a bit more difficult.”……………………………………….Full Article: Source

Gold price: Can resistance hold ahead of Fed meeting?

Posted on 02 December 2015 by VRS  |  Email |Print

Having dropped to an intraday $1,052 an ounce and settled at $1,054 on Friday – the lowest level since the $1,045 reached in February 2010 – gold rose in New York on Monday to $1,064 an ounce.
It added to gains overnight and at one point touched $1,074, though it has softened slightly in the hours since. Gold and other dollar-denominated commodities are currently being pulled hither and thither by the fluctuations in the US currency, which touched a near 13-year high before falling back. ……………………………………….Full Article: Source

Fed to blame for commodities rout, not China

Posted on 26 November 2015 by VRS  |  Email |Print

Blame China. A global glut of commodities has emerged because China suddenly decided it no longer wants mineral ores. Prices are now collapsing, which threatens the worldwide supply chain. It’s all China’s fault. I have one problem with this story. Look at the first chart on the quantity of China’s iron ore imports and you see scant sign that iron ore is no longer in demand. That demand curve has flattened out but this is after a 16-fold growth over the past 15 years. A breather was due at some point.
And what you see in iron ore you can also see in other major minerals and in petroleum. In some cases there has been no slowdown at all. Imports of copper ore and concentrates, for instance, are still growing at double digit rates………………………………………..Full Article: Source

Sebi may seek relief for commodity exchange warehouses

Posted on 26 November 2015 by VRS  |  Email |Print

There could soon be a glimmer of hope for hedgers and traders in farm futures such as pulses and oilseeds. Sebi is planning to write to the government to exempt exchange warehouses from stock limits under the Essential Commodities Act once prices of these commodities stabilise.
“We might request the government to exempt commodity exchange warehouses from stock limits to encourage more deliverybased trades in pulses and oilseeds and to curb the possibility of excessive speculation through the threat of delivery,” a senior Sebi official told ET………………………………………..Full Article: Source

Iran oil minister doubts OPEC will act on market

Posted on 24 November 2015 by VRS  |  Email |Print

Iran’s Oil Minister Bijan Zanganeh said on Monday he doubted there was sufficient will in all of OPEC for the group to act to support oil prices at its Dec.4 meeting. When asked for his reaction to a statement from Saudi Arabia reiterating its continued openess to work with producers outside OPEC, the minister said: “I don’t believe there is strong intention from some parts of OPEC to stabilise the market.”
“It’s OPEC’s mission to stabilise the market for the benefit of all its members,” he added. “If (that) is subject to cooperation with non-OPEC producers then it means we are going to do nothing.”……………………………………….Full Article: Source

What’s in store for gold after Fed rate hike

Posted on 23 November 2015 by VRS  |  Email |Print

Gold prices took a blow last week as the Fed minutes of the October meeting hinted at a rate hike by the central bank in December. The yellow metal saw prices drop to a five-year low of $1,065/ounce and ended finally at $1,076/ounce on Friday.
A Fed spokesperson said the bank is confident of seeing inflation returning to its target of 2 per cent soon. The US dollar index, which measures the strength of the greenback against six other major currencies, rallied closer to the 100 mark. It hit a high of 99.85 on Wednesday and closed the week at 99.565………………………………………..Full Article: Source

Commodities rout and unfriendly regulations further thin foreign interest in China’s mining sector

Posted on 09 November 2015 by VRS  |  Email |Print

Foreign investment in China’s mining sector has slumped to the lowest in more than a decade amid the downturn in the commodities industry, which dampened the already low levels of inbound investment over the years due to the sector’s unfriendly regulatory environment. A relative abundance of distressed quality assets overseas amid the global commodities market rout also means foreign firms are unlikely to make significant investment in China soon, industry observers say.
“With the prolonged downturn in commodities, assets are being forced on to the market at prices that are reflective of the urgency which sellers must act,” John Tivey, the global head of mining and metals at law firm White & Case, told the South China Morning Post………………………………………..Full Article: Source

Fed inflicts more damage on gold price

Posted on 05 November 2015 by VRS  |  Email |Print

On Wednesday on the Comex market in New York, gold futures with December delivery dates fell for a sixth session in a row giving to trade at a seven-week low. Exchanging hands for $1,107.00 an ounce in late afternoon trade, gold is down more than $75 an ounce or 6% from where it trading just before the Federal Reserve’s interest rate announcement last week. Gold fell to a near five-year low of $1,085 in early August.
Fed Chair Janet Yellen testified before the House Financial Services Committee on Wednesday and echoed the language of the FOMC minutes which opened the door for a rate rise when the bank next meets in December. Yellen gave a positive reading of the employment and housing markets in the US further boosting rate hawks………………………………………..Full Article: Source

CFTC Pulls Plug on Commodity-Flows Report

Posted on 05 November 2015 by VRS  |  Email |Print

U.S. futures market regulators are going to stop collecting data on the flow of money from index funds into commodity markets, retreating from a practice they began a decade ago when those funds were blamed for soaring prices.
In a speech Wednesday, Commodity Futures Trading Commission Chairman Timothy Massad said the agency would stop surveying banks and traders for its monthly Index Investment Data report, which tracks the amount of money following commodity indexes such as the S&P GSCI and the Bloomberg Commodity Index………………………………………..Full Article: Source

No need for commodities investors to worry too much over Fed rate increase, analysts say

Posted on 30 October 2015 by VRS  |  Email |Print

US interest rates have long been regarded as critical in determining the outlook for commodities, but some analysts say investors need not worry too much about the US Federal Reserve reversing its monetary stimulus efforts in the near term, because commodity prices could rally even as US interest rates return to more normal levels.
Julian Jessop, chief global economist for Capital Economics, said in a report on Wednesday that it was widely assumed an increase in US interest rates might lead to lower commodity prices, as higher rates could result in slower economic growth, reduced demand for commodities, and increase the opportunity cost for investors holding commodities………………………………………..Full Article: Source

India: Investors could soon get to trade in commodity, weather-based indices

Posted on 26 October 2015 by VRS  |  Email |Print

Traders, rich investors and hedgers could get to trade in commodity and weather-based indices, akin to Nifty and Bank Nifty in the equity segment, in a matter of months. In a move to deepen the decade-old commodity futures market, its new regulator Sebi is studying how this could change the trading landscape.
“We are studying the commodity market. Our initial sense is that it is a shallow market. We would like it to be deepened like the equity market, where introduction of demat accounts and online trading were the game changers. We are identifying what these (game changers) could be for the commodity markets,” a senior Sebi official said……………………………………….Full Article: Source

London Gold Market Under Scrutiny as Bullion World Gathers

Posted on 19 October 2015 by VRS  |  Email |Print

The gold industry won’t just be guessing where prices are heading at its annual gathering in Vienna this week. It will ponder how to change London’s spot market, the biggest in the world.
The London Bullion Market Association, which oversees trading and is holding its annual conference starting Monday, has invited proposals on how to improve the city’s over-the- counter market and suggested more detailed reporting of transactions. At the same time, the producer-funded World Gold Council has also agreed with five banks to talk about potentially starting standardized central clearing and listed derivatives………………………………………..Full Article: Source

India: Agri commodities: Sebi trains focus on curbing speculation

Posted on 12 October 2015 by VRS  |  Email |Print

In its expanded role as regulator of the commodities derivative market, Sebi is working on a robust mechanism to ensure fair price discovery of agri products and curb excessive speculative activities. The regulator has already sought help from the Ministry of Agriculture with regard to the physical market price data sources and for improving the methodology for determination of final settlement price.
Sebi’s focus is to ensure that derivatives trading is used as a hedging instrument by farmers and others in the commodities marketplace against seasonal and unforeseen price fluctuations rather than for creating speculative bubbles to make quick money, a senior official said. ……………………………………….Full Article: Source

Bank of England quizzing UK banks over commodities exposure

Posted on 09 October 2015 by VRS  |  Email |Print

The Bank of England has asked British banks to report their exposure to commodities and ensure they are mitigating risks effectively, a source familiar with the situation said on Thursday. Prices for oil and other commodities have fallen sharply in recent months, and earlier on Thursday the Financial Times reported the BoE move had been triggered by the sharp fall in the shares of commodities and mining company Glencore.
“This is something being done in the course of normal supervision,” the source said, adding that the request had been made by the Prudential Regulation Authority, the arm of the BoE in charge of day-to-day bank regulation………………………………………..Full Article: Source

Ringing in a new era for commodity market

Posted on 05 October 2015 by VRS  |  Email |Print

After 12 years of debate between the Centre and various parties, the Forward Markets Commission (FMC) has finally merged with the Securities and Exchange Board of India (SEBI). The Forward Contracts Regulation Act (FCRA) now stands repealed. Commodity derivatives will be governed by rules of the Securities Contract Regulation Act (SCRA) and commodity exchanges will now become deemed stock exchanges.
This paves the way for new products and opens the door for banks, mutual funds and other institutions to start commodity trading. What helped the case for a merger this time was the scam at NSEL and the public furore that followed………………………………………..Full Article: Source

New Sebi rules for commexes

Posted on 02 October 2015 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) has tightened margin and collateral requirements for commodities trading, to align these with practices in the securities market. Now the regulator for commodities’ derivatives, too, a circular it issued on Thursday prescribes limits for various assets put as collateral with an exchange. The new norms shall be implemented from January 1.
The limit for cash or its equivalents has been fixed at 50 per cent and for commodity-specific limits, too. The limit for agri commodities to be accepted as liquid asset collateral is 40 per cent………………………………………..Full Article: Source

India combines markets and commodities regulators

Posted on 29 September 2015 by VRS  |  Email |Print

India has merged its markets and commodities regulators, in a move that paves the way to opening up commodities markets to foreign investors and could also lead to the listing of the country’s main stock exchanges.
The decision to combine the regulators was prompted by the collapse of India’s largest commodities spot market two years ago, prompting a crisis of confidence in the Forwards Markets Commission, which regulates commodities derivatives trading. A government investigation in 2013 found irregularities at the National Spot Exchange Limited, which traded short-term contracts in agricultural goods such as sugar………………………………………..Full Article: Source

Commodity participants keep fingers crossed

Posted on 29 September 2015 by VRS  |  Email |Print

It was a packed gathering at the Trident, Nariman Point, at an event to mark the subsuming of the commodity markets regulator, the Forward Markets Commission, with its capital markets counterpart, the Securities and Exchange Board of India (Sebi).
Finance Minister Arun Jaitley, economic affairs secretary Shaktikanta Das and Sebi chairman U K Sinha all made exhortation to “not worry about development of commodity futures, including agricultural futures”. That was in response to the worry of players in the commodity markets………………………………………..Full Article: Source

India: FMC to merge with Sebi Today

Posted on 28 September 2015 by VRS  |  Email |Print

In the first ever merger of two regulators, over 60-year-old Forward Markets Commission (FMC) will merge on Monday with the younger but much bigger capital markets watchdog Securities and Exchange Board of India (Sebi) to create a unified regulatory body. Sebi was set up in 1988 as a non-statutory body for regulating the securities markets, while it became an autonomous body in 1992 with fully independent powers.
FMC, on the other hand, has been regulating commodities markets since 1953, but lack of powers has led to wild fluctuations and alleged irregularities remaining untamed in this market segment. The commodities market has been known to be more prone to speculative activities compared to the better-regulated stock market, while illegal activities like “dabba trading” have also been more frequent in this segment………………………………………..Full Article: Source

U.S. regulators revise proposal on commodity position limits

Posted on 23 September 2015 by VRS  |  Email |Print

U.S. derivatives regulators are revising their proposal to limit the positions that traders can hold in commodity markets to make it easier for some hedge funds and banks to keep large trades. The Commodity Futures Trading Commission wants to allow financial firms to count their market positions separately from subsidiaries if the parent company says it does not control trading at the affiliate, according to a proposal issued on Tuesday.
Under revised rules, a company would simply be able to file a notice with the CFTC saying that it has no control over trading at a subsidiary and that firewalls are in place to prevent access to information, CFTC Chairman Timothy Massad said………………………………………..Full Article: Source

Bitcoin Is Officially a Commodity, According to U.S. Regulator

Posted on 18 September 2015 by VRS  |  Email |Print

Virtual money is officially a commodity, just like crude oil or wheat. So says the Commodity Futures Trading Commission (CFTC), which on Thursday announced it had filed and settled charges against a Bitcoin exchange for facilitating the trading of option contracts on its platform.
“In this order, the CFTC for the first time finds that Bitcoin and other virtual currencies are properly defined as commodities,” according to the press release. While market participants have long discussed whether Bitcoin could be defined as a commodity, and the CFTC has long pondered whether the cryptocurrency falls under its jurisdiction, the implications of this move are potentially numerous…………………………………Full Article: Source

India- New gold policy could be a win-win proposition

Posted on 17 September 2015 by VRS  |  Email |Print

The best part of the Modi government’s new gold policy is there will be tax relief on capital gains if you invest in the proposed bond scheme for the yellow metal.
Finance Minister Arun Jaitley, who had initiated the new policy in his budget speech in February 28, is in the process of giving final touches to what could well turn out be a game-changer for the government in terms of tackling the country’s massive current account deficit. But it may be another two months before the notification for the schemes is made………………………………………..Full Article: Source

India: No FPI Investment in Commodities Till Government Review

Posted on 10 September 2015 by VRS  |  Email |Print

Hopes of commodities market for FPI investment after coming under Sebi’s ambit later this month has been dashed by RBI, which has told the markets regulator to keep any such decision on hold till a policy review is done by the government in this regard.
While the government has issued notifications for merger of commodities markets regulator FMC with capital markets watchdog Sebi with effect from September 28, the revised norms for exchanges and various market participants were notified last month to pave way for the combined regulatory regime………………………………………..Full Article: Source

EU Probing ‘Anticompetitive Behavior in Precious Metals Spot Trading’

Posted on 26 August 2015 by VRS  |  Email |Print

The European Union’s competition watchdog is investigating alleged “anticompetitive behavior in precious metals spot trading,” a spokesman said. The spokesman for the European Commission, Ricardo Cardoso, declined to give more details on the probe.
The Wall Street Journal reported in February that U.S. officials are probing at least 10 major banks for possible rigging of the precious metals market. The U.K. Financial Conduct Authority and German financial watchdog BaFin had previously reviewed the precious metals benchmarks, but closed their inquiries without finding evidence of wrongdoing, people familiar with those probes said at the time………………………………………..Full Article: Source

Commodity trading norms cleared by Sebi

Posted on 25 August 2015 by VRS  |  Email |Print

Setting September 28 as the date for merger of Forward Markets Commission (FMC) with itself, Sebi on Monday announced new norms for commodities derivatives market under which exchanges and brokers in this segment will need to comply with rules applicable to their stock market peers.
The new regulations will also come into force on September 28, the date from which Sebi would begin regulating the commodity derivatives market as a unified regulator. These norms, approved by Sebi’s board here on Monday, will enable functioning of the commodities derivatives market and its brokers under Sebi norms and integration of commodities derivatives and securities trading in an orderly manner………………………………………..Full Article: Source

Sebi to discuss norms for commodities derivatives market

Posted on 24 August 2015 by VRS  |  Email |Print

Ready to merge commodity trading regulator FMC with itself, capital markets watchdog Sebi will discuss tomorrow a new set of norms and finer details for its regulation of commodities derivatives market. Sebi expects to complete the merger next month while its Chairman U K Sinha had recently cautioned small investors against coming for quick gains through speculation in the commodities market, saying it is “risky” and requires a lot of technical expertise.
At a board meeting scheduled tomorrow, the Securities and Exchange Board of India (Sebi) would discuss the progress on the merger process, regulatory changes needed in the commodity market and finalised the regulations, sources said………………………………………..Full Article: Source

Routing commodity trades through brokers may push up costs for hedgers

Posted on 21 August 2015 by VRS  |  Email |Print

Capital markets regulator SEBI has directed commodity broking firms to register themselves with it and abide by all norms for market intermediaries, including ‘fit and proper’ criteria once the Forward Markets Commission-SEBI merger becomes effective from September 28.
Once the registration is completed, SEBI may route all the commodity trades through the brokers as it is currently being done in the stock market. Liquidity to dip: This may pose a major challenge for physical market participants, such as large corporates and bullion traders who are registered currently as clearing members with the exchanges………………………………………..Full Article: Source

NGOs: Not enough done to regulate commodities

Posted on 21 August 2015 by VRS  |  Email |Print

Two Swiss non-governmental organisations have accused the government of being “obstinate” in not taking effective action to regulate the commodities sector, after it announced that “real progress” had been made on the issue. The cabinet approved on Wednesday a status report for the implementation of recommendations made in March 2013, to regulate the commodities industry.
It referred to stricter rules that were issued in the area of derivatives trading and anti-money laundering. The government’s interest “to promote transparency with regard to payments made by commodity companies to governments” and its support of the Extractive Industries Transparency Inititative (EITI) were also included………………………………………..Full Article: Source

India: Commodities market to not open to foreign investments for now

Posted on 18 August 2015 by VRS  |  Email |Print

The merger of Forward Markets Commission (FMC) and Securities and Exchange Board of India (Sebi) had triggered hopes that foreign investors would be allowed to participate in the commodities market. However, this may not happen just yet. As per sources the Reserve Bank of India (RBI) has asked Sebi to put a pause on the plan pending an approval from the government.
The investment of foreign portfolio investors (FPIs) in commodity derivatives was given an in-principle nod, as the Finance Bill cleared by the Lok Sabha during the budget session included commodity derivatives in the definition of securities………………………………………..Full Article: Source

Commodities caught in Federal Reserve crossfire

Posted on 18 August 2015 by VRS  |  Email |Print

After it emerged from bankruptcy protection in 2014, Genco Shipping & Trading was the darling of many hedge funds and distressed investors. But with world trade still virtually flat, Genco’s prospects have not improved much. The circumstances of dry bulk carriers are especially bleak.
In the first week of August, meanwhile, US coal producer Alpha Natural Resources filed for bankruptcy protection. The drop in coal prices is now dragging down metals, including aluminium, copper, iron ore and steel, as well as mining and trading firms………………………………………..Full Article: Source

World Gold Council recommends retaining India’s current hallmarking model

Posted on 31 July 2015 by VRS  |  Email |Print

World Gold Council on Thursday recommended that India’s current hallmarking model, built around independent hallmarking and assay centres, should be retained. In addition it recommended six key actions should be taken to improve the efficiency and effectiveness of the current system:
WGC recommended that the governance around the hallmarking process should be strengthened and there should be a customer awareness drive about hallmarking.There is a need to incentive and facilitate targeted expansion of hallmarking centres. It has also suggested to use BIS data to develop a ratings system for jewellers………………………………………..Full Article: Source

Commodity selloff: What it means for Fed rate hike

Posted on 22 July 2015 by VRS  |  Email |Print

A broad selloff in commodities and dollar strength point to disinflationary pressures on the horizon that weaken the argument for a near-term rise in U.S. interest rates, according to some analysts. This week has seen gold prices tumble to five-year lows and U.S. oil prices dip below $50 a barrel for the first time since April, with prices stabilizing a little on Tuesday.
“Given that weak commodity prices are likely to prompt a ripple out disinflationary effect it is hard to see how the Fed (U.S. Federal Reserve) would even consider hiking rates against such a weak backdrop, something markets don’t appear to be considering at the moment,” Michael Hewson, chief market analyst at CMC Markets UK, said in a note on Tuesday………………………………………..Full Article: Source

India further cuts gold, silver import tariff value

Posted on 17 July 2015 by VRS  |  Email |Print

Government today further slashed the import tariff value of gold to $376 per 10 grams and of silver to $498 per kg due to weak global prices. For last fortnight, the tariff value of gold was fixed at $382 per 10 grams and silver at $516 per kg.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices. The decrease in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, according to an official statement………………………………………..Full Article: Source

India: Regulating commodities: Panel advises Sebi to focus on crisis avoidance

Posted on 15 July 2015 by VRS  |  Email |Print

An experts panel has advised the markets regulator, the Securities and Exchange Board of India (Sebi), to first focus on understanding commodities markets and crisis avoidance before taking up developmental issues.
The recommendations were made in light of the government’s decision to merge the commodities market regulator, the Forward Markets Commission (FMC), with Sebi. The merger is expected to be effective from October………………………………………..Full Article: Source

Financial regulators target high-profile cases

Posted on 15 June 2015 by VRS  |  Email |Print

Financial watchdogs across three continents are targeting fewer, high-profile cases to levy ever-larger fines, despite growing recognition that even $1bn penalties do not work by themselves to prevent wrongdoing. Regulators in Hong Kong, the UK and the US increased the average size of their fines by at least 10 per cent from 2013 to 2014. The UK’s Financial Conduct Authority’s average penalty soared 272 per cent, new research shows.
Over a five-year period the increases were more stark: the US Commodity Futures Trading Commission’s average fines rose 772 per cent, while the FCA’s jumped 1,815 per cent………………………………………..Full Article: Source

New EU rules may hasten commodity liquidity flight

Posted on 09 June 2015 by VRS  |  Email |Print

Planned EU regulations on position limits in commodities are fuelling intense debate about whether the move could prompt traders to flee to Asian markets, further hurting European liquidity and potentially hurting economic growth. Restrictions on banks and capital requirements has already subdued enthusiasm for commodity trading.
The new rules aimed at stopping abuses of pricing power on commodity markets will encompass position limits, or curbs on how much one trading house can hold of a specific commodity, possibly on thousands of futures contracts………………………………………..Full Article: Source

New EU rules may hasten commodity liquidity flight

Posted on 08 June 2015 by VRS  |  Email |Print

Planned EU regulations on position limits in commodities are fuelling intense debate about whether the move could prompt traders to flee to Asian markets, further hurting European liquidity and potentially hurting economic growth.
Restrictions on banks and capital requirements has already subdued enthusiasm for commodity trading. The new rules aimed at stopping abuses of pricing power on commodity markets will encompass position limits, or curbs on how much one trading house can hold of a specific commodity, possibly on thousands of futures contracts………………………………………..Full Article: Source

Should governments intervene in energy markets?

Posted on 05 June 2015 by VRS  |  Email |Print

Climate change and public sector debt are two of the biggest issues for modern governments and they come together in the vexed question of how far the state should intervene in energy markets. According to the International Monetary Fund, energy subsidies accounted for 8% of total global government spending in 2011 ($1.9tn, or £1.2tn), due mainly to the political appeal of keeping energy prices down.
In the UK, energy remains a contentious issue. Despite sharp falls in wholesale prices for coal and gas over the past year, household bills are as high as ever – prompting regulator Ofgem to refer the retail energy market to the Competition and Markets Authority………………………………………..Full Article: Source

Sebi not keen on forming separate division to regulate commodities

Posted on 05 June 2015 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) is not in favour of creating a separate department to regulate the commodities market after commodity market regulator Forward Markets Commission (FMC) is merged with the capital market regulator. According to two persons directly involved in the discussions, the proposed merger is likely to be completed by September and the departments of Sebi that monitor brokers and exchanges would be utilized to oversee commodity brokerages and bourses, respectively.
“The view within Sebi is that a separate division will only lead to duplicity of work related to brokerages and exchanges. The better approach would be to seamlessly integrate these commodity market entities with their securities segment counterparts to best utilize the regulatory resources,” said a person on condition of anonymity as he is not authorized to speak to the media………………………………………..Full Article: Source

India: Rajan moots minimum support price across commodities

Posted on 03 June 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) Governor Raghuram Rajan, on Tuesday, said that minimum support price (MSP) should be available to across commodities. “In India, few commodities are getting support price……. States produce more commodities which are having MSP and less of such commodities which are not having MSP…..this creates disparity,” said Dr. Rajan while addressing a press conference here announcing the second bi-monthly monetary policy.
“Inflation control will also be helped by limiting the increase in agricultural support prices,” he added. Furthermore, he said, monetary easing could only create the enabling conditions for a fuller government policy thrust that hinged around a step up in public investment in several areas that could also crowd in private investment………………………………………..Full Article: Source

India: RBI asks banks to create awareness on hedging agri-commodities

Posted on 29 May 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) on Thursday advised banks to create awareness among their borrowers for hedging agricultural commodity price risk. “Banks should encourage hedging by the agri-borrowers by creating awareness amongst them regarding the utility and benefits of hedging through agri-commodity derivatives,” RBI said in a notification to all banks. “This would help to develop strong risk management capabilities to manage agri-commodity price risk,” it added.
At the same time, said RBI, “banks must keep the sophistication, understanding, scale of operation and requirements of their agri-borrowers in mind while advising on the availability and use of these instruments.” To begin with, banks were asked to encourage large agricultural borrowers such as agricultural commodity processors, traders, millers and aggregators to hedge their commodity price risk…………………………………Full Article: Source

Chinese gov’t allows commodity trading

Posted on 15 May 2015 by VRS  |  Email |Print

China has more than tripled the number of central government-owned firms allowed to trade commodities derivatives overseas without regulator approval. The move will give China more clout in global markets for metals, energy and agricultural products.
One hundred more large government-backed Chinese companies will be permitted to trade in international futures, swaps and options markets, according to three sources with direct knowledge of the changes. It marks the biggest expansion of the list in nearly 10 years…………………………………..Full Article: Source

banner
February 2016
S M T W T F S
« Jan    
 123456
78910111213
14151617181920
21222324252627
2829