Wed, Apr 16, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Futures and Options more

India: FM seeks CTT impact analysis from FMC

Posted on 19 March 2013 by VRS  |  Email |Print

Perturbed by the possible negative implication of the proposed commodity transaction tax (CTT), the Finance Ministry has asked commodity derivatives market regulator the Forward Markets Commission (FMC) to do a detailed impact analysis of how CTT once implemented will affect commodity derivatives non-agri segment and submit the report to it.
The ministry had asked the FMC to submit the report by March 15. Since, the FMC chairman Ramesh Abhishek returned from abroad on Sunday, the report will now be submitted in a day or two. FMC chairman is also meeting consumer affairs minister where the issue of CTT could come up for discussion, said a source in the know………………………………………..Full Article: Source

How to trade commodities with binary options

Posted on 15 March 2013 by VRS  |  Email |Print

They tend to have high volatility as their supply can easily be affected by the weather or news that deals with their extraction or transportation. Traditionally, commodities have been one of the most volatile assets in the financial markets.
Copper: As an input for several key industries, copper is a high demand commodity by the industrialized nations around the world. When major economies like China and Europe begin to experience increased manufacturing capacity, the prices of copper will also rise in tandem. Therefore, look for reports relating to GDP’s growths and Purchasing Managers’ Indexes (PMI) to identify opportunities in this commodity………………………………….Full Article: Source

SHFE calls for opening commodities futures to overseas traders

Posted on 12 March 2013 by VRS  |  Email |Print

China should accelerate opening commodities futures to overseas investors and detail regulations allowing domestic firms to trade raw materials contracts on bourses abroad, Shanghai Futures Exchange Chairman Yang Maijun said in proposals to the National People’s Congress.
Government agencies including foreign exchange regulators and the tax bureau should use preparations already under way for crude oil futures trading to prepare similar policies allowing foreign investors to trade base metals, precious metals and natural rubber futures, Yang said………………………………………..Full Article: Source

India: Commodity derivative volumes shrink for first time; gold leads fall

Posted on 11 March 2013 by VRS  |  Email |Print

India’s Rs 170-lakh-crore commodity futures market might end FY13 with its worst ever performance. So far, the daily average volumes on five commodity bourses have fallen by about four per cent, while aggregate annual volume is lower by 5.8 per cent, compared with the 50 per cent growth in the past three years. Total average daily trades, too, are lower by seven per cent against last year’s 70 per cent growth.
Shreekant Javalgekar, managing director and chief executive officer of MCX, said: “International exchanges such as CME and LME have seen a sharp fall in volumes due to lower volatility across commodity baskets. MCX has seen a much lower fall due to our sustained awareness campaign among SMEs and farmers’ cooperatives, etc………………………………………..Full Article: Source

What commodity markets need

Posted on 11 March 2013 by VRS  |  Email |Print

The decade-old commodity futures market is set to end this financial year with it worst-ever performance in terms of growth in volumes and number of trades. Till March 6, this financial year, daily average volumes on five commodity bourses taken together fell 4 per cent while total annual volumes were 5.8 per cent lower compared to the 50 per cent growth in the last three years.
One reason for this could be that commodity prices have been on a decline. The number of trades were lower by 7 per cent against last year’s growth of 70 per cent and little less than average 50 per cent growth in the last three years. This fall in volumes and numbers of trade has happened for the first time since online nationwide commodity exchanges started trading in late 2003-04………………………………………..Full Article: Source

Commodities saw more growth than other derivatives in 2012 -WEF

Posted on 08 March 2013 by VRS  |  Email |Print

Commodity futures and options were the only derivatives that saw growth in trading volumes last year, the World Federation of Exchanges said, amid what analysts said was a weak U.S. market after the MF Global and Peregrine broking scandals.
The number of commodity derivatives traded across the world rose by around 19 percent for a second straight year in 2012, reaching 3,265 contracts in all from 2,749 in 2011, the Paris-based WEF said in a statement issued on Thursday………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Commodities derivatives growth driven by China, WFE says

Posted on 08 March 2013 by VRS  |  Email |Print

Commodities were the only asset class that saw a rise in the number of exchange-traded derivatives contracts last year, according to statistics compiled by the World Federation of Exchanges (WFE).
The growth was driven by mainland Chinese exchanges, the group found. Exchange-traded derivatives contracts in commodities rose by 19% last year, WFE said, with exchanges in China seeing a 34% increase and accounting for 41% of the global volumes………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Bullish gold analyst cuts 2014 price forecast

Posted on 06 March 2013 by VRS  |  Email |Print

The gold price is set to flatten in 2013, says new analysis from Bank of America Merrill Lynch, before rising in 2014 on renewed currency weakening by central banks. The giant US bank’s chief gold analyst has cut next year’s price target, however – down by 10% from $2000 per ounce – and cut the 2013 forecast by 7% to an average gold price of $1680.
The gold price averaged $1669 in 2012 according to trade body the London Bullion Market Association………………………………………..Full Article: Source

UCX to commence trading in April

Posted on 06 March 2013 by VRS  |  Email |Print

India’s sixth nationwide commodity futures trading platform, Universal Comm-odity Exchange (UCX), is set to go live in April this year with at least 10 agri and non-agri commodities in its kitty. The exchange has enrolled a little 200 members for trading on its platform, which is awaiting the issuance of a unique trading code by the regulator, Forward Markets Comm-ission (FMC).
“We are in the process of getting a unique trading code for each of our registered members. Once that process gets completed, we would be ready for launch,” said Ketan Sheth, managing director of Commex Technologies, the promoter of UCX………………………………………..Full Article: Source

Speculators buy up precious, base metals futures, options — CFTC

Posted on 12 February 2013 by VRS  |  Email |Print

Speculators returned as buyers in all precious and base metals futures and options traded on the Comex division of the New York Mercantile Exchange and the Nymex, according to U.S. government data, spurred in part by a rise in prices.
For the week ended Feb. 5, speculators in the Commodity Futures Trading Commission’s weekly commitment of traders report pushed their net-long positions in the platinum group metals to even higher highs. Funds also bolstered their net-long positions in copper on hopes of a strong economic outlook. There were increases in speculators’ net-long positions in gold and silver, although the gains were relatively modest in silver………………………………………..Full Article: Source

India: Commodity futures needed to hedge price risks

Posted on 06 February 2013 by VRS  |  Email |Print

Commodity futures offer a safe, scientific way of hedging price risks, besides opening up another avenue of investment, according to Deepak Sayana, Deputy Manager, NCDEX.
He was speaking here today at a seminar on stakeholders’ awareness and education on agribusiness and commodities organised by the Hindu Business Line in association with NCDEX and Forward Markets Commission. He said the five national commodity exchanges and 21 regional exchanges offere a safe, standardised futures trading opportunity for traders to mitigate price risks………………………………………..Full Article: Source

Derivatives markets regulation: Back to the futures?

Posted on 05 February 2013 by VRS  |  Email |Print

Historically, futures exchanges have been very effective at preventing the failings of individual traders from hurting others. That is one reason why America’s Dodd-Frank law introduced new rules for over-the-counter (OTC) swaps designed to make them more like futures. (“Swap” is a broad term for many types of financial derivatives directly agreed between two parties, including credit default swaps and currency forwards.
The most common is the interest rate swap, which allows people to transform floating-rate debt into fixed-rate debt and vice versa.) In particular, policymakers want greater transparency and central counterparty clearing……………………………………..Full Article: Source

Wall Street vs. commodity traders at U.S. watchdog swaps hearing

Posted on 01 February 2013 by VRS  |  Email |Print

Wall Street banks and Chicago commodity traders on Thursday will each try to sway the top U.S. derivatives regulator their way at a public hearing on whether new rules unduly favor one of the two rivals.
The Commodity Futures Trading Commission (CFTC) is drawing up rules for swaps, speculative financial instruments that were unregulated at the time of the 2007-09 financial crisis, and were widely blamed for exacerbating it………………………………………..Full Article: Source

It’s time for sensible regulation of derivatives

Posted on 23 January 2013 by VRS  |  Email |Print

The beauty of a pendulum is that once set in motion it can swing predictably forever. The difficulty is getting it to return to the middle. This seems to be the problem with regulation of derivatives.
In the 1990s, derivatives were widely heralded as new instruments that could improve the transference of risk. In 1999, then Federal Reserve Chairman Alan Greenspan stated: “By far the most significant event in finance during the past decade has been the extraordinary development and expansion of financial derivatives.” He went on to argue that they “enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it………………………………………..Full Article: Source

EU parliament in talks to challenge new derivatives rules

Posted on 22 January 2013 by VRS  |  Email |Print

The European Parliament may demand a rethink of new rules designed to make derivatives markets safer in the wake of the financial crisis, potentially leading to months of uncertainty for banks that are big users of these products.
Members of the Parliament are discussing a resolution which, if approved next month, would trigger a formal review of the rules, two sources from the European Parliament said………………………………………..Full Article: Source

U.S. dispute over derivatives trading data heats up

Posted on 17 January 2013 by VRS  |  Email |Print

A conflict over potentially valuable derivative trading data heated up on Wednesday, underlining how an overhaul of Wall Street after the financial crisis is sparking acerbic competition battles.
The Depository Trust & Clearing Corporation (DTCC), which performs back-office functions for investment banks, threatened to sue the top U.S. derivatives regulator over how rival CME Group Inc (CME.O) plans to handle the data………………………………………..Full Article: Source

Coming soon: Rupee futures on CME, ICE

Posted on 07 January 2013 by VRS  |  Email |Print

In a move that could see a gradual shift of the onshore currency market to offshore, two leading global exchanges — Intercontinental Exchange (ICE) and CME Group — will launch foreign exchange futures contracts on the Indian rupee on January 22 and 28, respectively.
Already, an over-the-counter (OTC) USD-INR non-deliverable forward (NDF) offshore market for trading in currencies that have no full convertibility, such as the Indian rupee, is in existence, but experts reckon that the launch of standard rupee futures contracts on the two American exchanges will lure foreign investors, who are now prohibited from participating in the Indian OTC and exchange-traded markets………………………………………..Full Article: Source

Chicago agricultural commodities post mixed performances

Posted on 14 December 2012 by VRS  |  Email |Print

Chicago agricultural commodity futures post a mixed performance Thursday, with corn and wheat futures down while soybeans up, as the net weekly export data dominated the trading on the day.
The most active corn contract for March delivery fell 5.25 cents, or 0.72 percent, to close at 7.2025 dollars per bushel. March wheat edged down 3.5 cents, or 0.43 percent, to settle at 8. 085 dollars per bushel. January soybeans rose 3 cents, or 0.2 percent, to close at 14.765 dollars per bushel………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Weakness in gold ‘being caused by futures market’

Posted on 06 December 2012 by VRS  |  Email |Print

The wholesale market gold price traded just above $1,700 an ounce during Wednesday morning in London, having risen back above that level in the earlier Asian session, though they remained near one-month lows.
Silver hovered just above $33 an ounce this morning, down 1.3% on the week, while stocks and commodities edged higher. US and German government bond prices gained, while longer-dated UK gilts fell ahead of the chancellor’s Autumn Statement in London, at which he will unveil the latest UK economic projections………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Regulators pledge to avoid cross-border clashes over derivatives

Posted on 05 December 2012 by VRS  |  Email |Print

Derivatives regulators from major trading centres promised on Tuesday to minimise cross-border clashes over their new rules to rein in risks in the $640 trillion sector and give industry extra time to adjust.
World leaders agreed in 2009 to increase transparency by requiring swaps contracts to be recorded, cleared and traded on electronic platforms by the end of this month, but not all countries are ready………………………………………..Full Article: Source

World’s first glass futures lands in China

Posted on 05 December 2012 by VRS  |  Email |Print

The world’s first glass futures landed in Zhengzhou Commodity Exchange on Dec.3. The benchmark price of the first glass futures was 1420 yuan per ton. The contract prices tumbled as soon as the market opened, with the price of major contract 1305 falling 7.18 percent to 1319 yuan per ton.
The trading volume of all contract types varying in nine months totaled 720 thousand hands, among which the trading volume of major contract 1305 was nearly 700 thousand hands, accounting for 97 percent. The positions held were nearly 80 hands. All these mark an unusual trading condition of a new type of futures in the domestic market………………………………………..Full Article: Source

Hedging is a scientific tool for price risk management in futures trading

Posted on 03 December 2012 by VRS  |  Email |Print

‘Hedging’ is a scientific tool for price risk management and helps in reassuring both sellers and buyers of the profit margins but not the speculative profits, said G. Chandrashekhar of The Hindu Business Line.
Chandrashekhar portrayed the fast-changing economic scenario, explicitly indicating a bright future for food market and how national economies were gradually integrating with global market, necessitating the stakeholders to develop a global perspective about the dynamics of international market……………………………………….Full Article: Source

Options expiry “could move gold price towards $1800″

Posted on 28 November 2012 by VRS  |  Email |Print

The Gold Price dipped back below $1750 per ounce Tuesday morning, though it remained near to last week’s close, as stock markets recovered losses following news of a deal on Greece’s debt burden. “We continue to be bullish so long as gold holds above the $1705 low from mid-November,” says the latest technical analysis from Scotia Mocatta.
Over in New York, the difference between bullish and bearish contracts held by Comex gold futures and options traders, the so-called speculative net long, rose for the second week running in the week ended last Tuesday, data published last night by the Commodity Futures Trading Commission show………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Record high volume growth in derivatives, commodities, says SGX

Posted on 05 November 2012 by VRS  |  Email |Print

Volume growth in derivatives and commodities trading and clearing hit a record high last month, but the securities market activity declined, said the Singapore Exchange (SGX).
According to its monthly report, the turnover for securities fell 6 per cent year-on-year to S$26 billion last month, while daily average value (SDAV) fell 14 per cent to S$1.2 billion. Month-on-month, turnover fell 8 per cent from September, while SDAV was down 16 per cent………………………………………..Full Article: Source

China’s futures market turnover rises

Posted on 05 November 2012 by VRS  |  Email |Print

The turnover of China’s futures market hit 134.74 trillion yuan ($21.39 trillion) during the first 10 months of 2012, a year-on-year increase of 18.84 percent, latest data has indicated.
More than 1.15 billion transactions took place on the country’s futures market in the January-October period, up 32.51 percent from the previous year’s equivalent period, according to a China Futures Association statement issued on Saturday………………………………………..Full Article: Source

Banks retreat from commodity derivatives

Posted on 30 October 2012 by VRS  |  Email |Print

Increasing capital requirements and other regulatory constraints are cutting the headcount and risk-taking ability of banks in commodity and energy derivatives. Might this diminished role pave the way for less regulated participants to take their place?
Investment bankers admit they are unlikely objects of sympathy. Since the financial crisis, bankers have been subject to an overwhelming degree of popular criticism, possibly only approaching the level of hatred afforded to arms manufacturers, large pharmaceutical companies and the tobacco industry. In response to the critical public mood, politicians have set in train a variety of regulatory reforms that will make it harder for banks to compete in commodity and energy derivatives………………………………………..Full Article: Source

EU may toughen commodity swaps curbs in financial rules

Posted on 26 October 2012 by VRS  |  Email |Print

Commodity derivative speculators may face tougher curbs under compromise plans to overhaul the European Union’s financial market rules.
Governments may seek to restrict the number of commodity- derivative contracts that traders can enter into, according to a draft version of the rules prepared by Cyprus, which holds the rotating presidency of the EU. Such a requirement would go beyond a draft law published last year by Michel Barnier, the EU’s financial services chief………………………………………..Full Article: Source

Investors looking to miners for sense of futures markets

Posted on 22 October 2012 by VRS  |  Email |Print

Investors will get a new sense of how Canadian miners are dealing with the wobbly commodities cycle this week when some key producers start to report quarterly results.
Companies due to report are Teck Resources Ltd., the country’s largest diversified miner; No. 1 fertilizer maker Potash Corp. of Saskatchewan Inc.; Goldcorp Inc., one of the world’s largest gold miners; and mid-tier gold miner Agnico-Eagle Mines Ltd………………………………………..Full Article: Source

India: Boost soon for derivatives in illiquid commodities

Posted on 17 October 2012 by VRS  |  Email |Print

The Forward Markets Commission (FMC), the commodity derivatives market regulator, is planning to soon allow market-making in illiquid commodities, to enhance depth in the futures market and provide equal opportunity for producers of all commodities.
Talking on the sidelines of FMC’s advisory committee meeting on Tuesday, Ramesh Abhishek, chairman, said, “Mem-bers were of the view that market-making should be allowed in illiquid commodities to enhance depth in the commodity futures market. We would take our view soon.”……………………………………….Full Article: Source

Funds’ bullish positions in U.S. precious metals futures, options continue to grow — CFTC

Posted on 16 October 2012 by VRS  |  Email |Print

Funds increased their net bullish positions in precious metals futures and options contracts traded on Comex division of the New York Mercantile Exchange and the Nymex, making it eight straight weeks of gains for gold and platinum group metals, according to U.S. government data released Friday.
For the week ended Oct. 9, speculators in the Commodity Futures Trading Commission’s weekly commitment of traders report bumped up their net-long positions precious metals in both the legacy and disaggregated reports. Activity for copper was mixed………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

HKEx CEO: LME buy will bring new commodity products

Posted on 16 October 2012 by VRS  |  Email |Print

Hong Kong Exchanges and Clearing Ltd.’s deal to buy the London Metal Exchange will lead to new commodity offerings and provide the best opportunity for exposure to Chinese growth and liberalization, Hong Kong Exchanges’ Chief Executive Charles Li said Monday.
The London Metal Exchange is primarily a marketplace for base metals such as copper and aluminum. The Hong Kong Exchanges group, or HKEx, is one of the world’s largest exchange owners by market capitalization……………………………………….Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Commodity exchange battleground switches to “swaps”

Posted on 12 October 2012 by VRS  |  Email |Print

Two of the world’s top commodity exchange powerhouses are scrambling to turn new regulations to their advantage in an important but largely hidden piece of their business, the trading and clearing of energy swaps.
Chicago-based giant CME Group Inc. has lost ground in the estimated 747.8 million pounds-a-year business of guaranteeing over-the-counter swaps to arch-rival IntercontinentalExchange Inc. in recent years, company data show, as the Atlanta-based upstart offered cutting-edge trade technology………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

CFTC mulls delay on rules impacting energy swaps: Bloomberg

Posted on 12 October 2012 by VRS  |  Email |Print

The U.S. Commodity Futures Trading Commission may delay a rule set to take effect on Friday that would impact cleared energy swaps, according to a report by Bloomberg on Thursday.
New rules that were mandated by the 2010 Dodd-Frank financial oversight law require firms that have $8 billion or more in annual swap dealing activity to register with regulators as swap dealers, bringing them under additional scrutiny………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Singapore an ideal centre for water and carbon derivatives trading

Posted on 12 October 2012 by VRS  |  Email |Print

Singapore may not have a carbon tax regime yet but being a financial hub, it may be poised to be a centre for water and carbon trading. This is according to the inventor of carbon trading, Dr Richard Sandor, who was speaking at a Singapore Exchange (SGX) lecture.
Governments around the world are attempting to cut carbon emissions and reduce the effects of global warming. Regional countries are reassessing their entire energy policy to be in line with global demands to cut carbon emissions………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

China funds, brokerages embrace commodity futures as rules relax

Posted on 11 October 2012 by VRS  |  Email |Print

Two Chinese fund houses have launched funds focused on the domestic commodities futures market as they look to tap into the burgeoning market that regulators have cautiously opened to local financial institutions this year.
More than a dozen Chinese futures brokerages, which until recently were barred from investing directly into the futures market, have also applied to set up funds that trade commodity futures through a managed account product………………………………………..Full Article: Source

Nigeria: Commodity derivatives – a must for emerging economies

Posted on 28 September 2012 by VRS  |  Email |Print

Commodity derivatives are useful tools for hedging against risk in emerging economies whose revenues mainly come from exports of mono products. Commodity markets are generally held to comprise oil and gas, gold, silver, platinum and palladium, copper nickel, aluminum, zinc and tin, as well as agricultural products which include grain, sugar, coffee, cocoa.
Each of these products can potentially use derivative instruments for risk management purposes, but it is the energy and metals markets that are at present the most well developed with parallels with most financial derivatives products………………………………………..Full Article: Source

The Eurozone and commodity contracts

Posted on 17 September 2012 by VRS  |  Email |Print

Under English law, it is generally accepted that a contract is frustrated when without default of either party, a contractual obligation, which is or becomes significant, becomes incapable of being performed because the circumstances in which the performance is called for renders it radically different from that envisaged by the parties at the time of contracting.
Where a contact is frustrated, the law declares both parties to be discharged from further performance and brings the contract to an end immediately………………………………………..Full Article: Source

Should banks be allowed in commodity futures trading?: India’s experience

Posted on 29 August 2012 by VRS  |  Email |Print

It may sound surprising to some people, but it’s true that banks are not allowed to trade in commodities in India. The banks are allowed to trade in financial instruments (such as shares, bonds and currencies) in securities market but the Banking Regulation Act of 1949 strictly prohibits banks (both domestic and foreign) from trading in goods and therefore they are not allowed to trade in commodity futures market.
The Section 8 of Banking Regulation Act clearly states that no bank shall “directly or indirectly deal in the buying or selling or bartering of goods, except in connection with the realisation of security given to or held by it.”……………………………………….Full Article: Source

CFTC issues final rules on swaps and swap dealer requirements

Posted on 28 August 2012 by VRS  |  Email |Print

The Commodity Futures Trading Commission (CFTC) today approved final rules to improve the risk management procedures of swap dealers and major swap participants. As Opalesque has previously reported, once the rules go into effect, they will trigger additional provisions already outlined through the Dodd-Frank Act.
The Dodd-Frank Wall Street Reform and Consumer Protection Act directed the Commission to adopt rules on the timely and accurate confirmation, processing, netting, documentation, and valuation of all swaps, as well as the reconciliation and compression of swap portfolios. These rules fulfill this congressional direction. Many of these final rules establish the product definitions that will set the scope for how swaps markets activities and swaps dealers will be supervised through both the CFTC and the Securities and Exchange Commission (SEC)………………………………………..Full Article: Source

Commodity futures market turnover up 20pct in Jan-Mar, led by bullion: FMC

Posted on 24 August 2012 by VRS  |  Email |Print

The total value of trade in the commodity futures market rose 20 per cent to Rs 44.03 lakh crore in the first three months this year, led by gold and silver, market regulator FMC has said.
“The value of trade during January to March 2012 was Rs 44.03 lakh crore as against Rs 36.78 lakh crore in the corresponding period last year,” Forward Markets Commission (FMC) said in its latest bulletin. Trading in bullion contributed a major share in the total value of trade in the market, it said………………………………………..Full Article: Source

FMC bans lean season agri commodities contracts for 2013

Posted on 21 August 2012 by VRS  |  Email |Print

The Forward Markets Commission (FMC) has done away with several agri-commodities contracts for 2013, extending the list of contracts already banned. This is in keeping with its decision that contracts will not be allowed during the lean season when there are insufficient supplies to make for any meaningful price discovery.
“This year we did away with the September soyabean contract,” said Ramesh Abhishek, Chairman of FMC – the commodities market regulator………………………………………..Full Article: Source

South Korean derivatives market doubles to $27tn in four years

Posted on 15 August 2012 by VRS  |  Email |Print

The South Korean derivatives market has evolved into the worlds largest in terms of trading volume accounting for roughly 20% of the global total and doubling in value in 2011 to 30 quadrillion won, or approximately US$27tn, according to new research from Celent. Despite the significant spike in activity, the market still has opportunities for growth - the nation’s OTC derivatives trading volume possesses a meager 0.19% of the global pie, lagging significantly behind other world markets.
2011 was also the year in which South Korea clinched the top seat as the leading listed derivatives market with volume reaching 3.9bn transactions, outpacing by a wide margin the US-based CME Group which currently holds second place in terms of listed derivatives trading volumes………………………………………..Full Article: Source

Regulators win as ICE converts swaps to futures: Kemp

Posted on 07 August 2012 by VRS  |  Email |Print

IntercontinentalExchange (ICE) last week surprised the derivatives world by announcing that all its over-the-counter cleared energy swaps will be converted to futures contracts from January 2013.
Most market participants had expected these products to be brought within the framework of futures regulation after new rules implementing the Dodd-Frank Act reversed the previous advantages for OTC swap contracts compared with exchange-traded futures………………………………………..Full Article: Source

Near-term weak but long-term trending to strong commodities demand

Posted on 03 August 2012 by VRS  |  Email |Print

There is near-term weakness in the mining business but the future points to trillions of dollars worth of growth. Tough short-term demand conditions do confront the industry, but long-term demand and supply scenarios continue to point to the modern world being mining’s oyster.
Projections to 2025 point to cities around the world constructing the equivalent of the entire land area of Austria – 80 000 km2 – in residential and commercial floor space, which will require $80-trillion worth of investment………………………………………..Full Article: Source

Mexican farmers to sell commodities on futures market

Posted on 02 August 2012 by VRS  |  Email |Print

The government and brokers are launching the Market Risk Management Program, which will allow farmers to sell commodities using futures contracts, Mexican officials said. The program’s goal is to stabilize farm prices in Mexico and guarantee farmers’ incomes via contracts that cover prices, Finance Secretary Jose Antonio Meade and Agriculture Secretary Francisco Mayorga said.
The Agriculture Secretariat will allocate 550 million pesos (about $41 million) to provide funding for farmers, who “will be able to obtain financing of up to 5 billion pesos (some $410 million) in commercial transactions,” Mayorga said………………………………………..Full Article: Source

Why the oil futures market did not contribute to high oil prices

Posted on 27 July 2012 by VRS  |  Email |Print

A recent study by Luciana Juvenal and Ivan Petrella suggests that the financialization of oil futures markets contributed significantly to the surge in oil prices after 2003. Lutz Kilian, Professor of Economics at the University of Michigan, questions their analysis and highlights that their paper actually does not shed any light on the role of Wall Street speculation.
The question of how much speculative pressures contributed to the surge in the real price of oil between 2003 and mid-2008 continues to be hotly debated in policy circles. A common view among policy makers is that excessive speculation driven by the financialization of oil futures markets played a key role in causing oil prices to peak at unprecedented levels in mid-2008………………………………………..Full Article: Source

Commodity investing: How to trade crude oil futures

Posted on 26 July 2012 by VRS  |  Email |Print

As one of the most significant resources in the world, crude oil is also a staple financial instrument for hegder, traders, and investors all across the globe. Keeping up with crude markets requires a keen attention to detail as well as patience in what is typically a volatile industry.
For those looking to dabble in crude oil futures, there are a number of options available, leaving some to wonder where to begin. Below, we outline strategies for trading crude futures as well as a few other products that offer similar exposure……………………………………….Full Article: Source

The origin and evolution of the commodity futures market

Posted on 19 July 2012 by VRS  |  Email |Print

Over the course of 175 years, the city of Chicago has defied the odds and emerged as a major player in the global market. From Al Capone to the current President of The United States, from the 1893 Chicago World Fair to this past summer’s NATO convention, Chicago is a global city of past, present and future.
Indeed, if one were to speculate at the city’s founding in 1837 that someday Chicago would have a Gross Domestic Product of $5.32 Billion, which is larger than 44 states today, it would have been nothing short of laughable. However, as this article will demonstrate, history is often a very ironic tale………………………………………..Full Article: Source

India: Five agri commodities under Forward Markets Commission lens

Posted on 18 July 2012 by VRS  |  Email |Print

The Forward Markets Commission (FMC), the regulator for commodities futures, has initiated moves to check any price rise due to possible speculation in agricultural goods in the wake of deficient rains and is keeping an eye on price movement in five commodities — soyabean, soya oil, rapeseed mustard (RM) seed, chana and potato.
“We will step in as soon as we are required to take any action. We have initiated steps over the past few weeks that have ensured that speculative transactions do not take place,” FMC chairman Ramesh Abhishek said………………………………………..Full Article: Source

India: Q1 commodity futures turnover up 9pct

Posted on 16 July 2012 by VRS  |  Email |Print

Commodity futures turnover in India, the world’s second largest wheat and rice growing nation, grew only 8.95 percent in the first three months of the fiscal year from April, despite a double digit jump in volumes of energy and agri commodities.
Total value of trade rose Rs 41.72 trillion from April to June, a statement on the Forward Markets Commission’s (FMC) website said. FMC regulates commodity markets in India………………………………………..Full Article: Source

banner
banner
April 2014
S M T W T F S
« Mar    
 12345
6789101112
13141516171819
20212223242526
27282930