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Commodities Briefing - Category | Futures and Options more

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

Commodity investing: How to trade copper futures

Posted on 13 July 2012 by VRS  |  Email |Print

As one of the most popular industrial metals in the world, copper has cemented its place into the commodity world as a prime trading instrument for many. The metal is used in everything from circuit boards and plumbing, to brakes and even makes an appearance in the Statue of Liberty (copper in fact makes up 80 tons of Lady Liberty).
For those looking to dabble in copper futures, there are a number of options available, leaving some to wonder where to begin. Below, we outline strategies for trading copper futures as well as a few other products that offer similar exposure……………………………………….Full Article: Source

India plans to allow banks to trade commodity derivatives

Posted on 05 July 2012 by VRS  |  Email |Print

India’s parliament is likely to receive an amendment in its next session that would permit financial institutions such as banks and mutual funds to trade in commodity derivatives and introduce trading of commodity options, Food and Consumer Affairs Minister K.V. Thomas said Wednesday.
Supporters of the amendment to a law governing commodity derivatives markets say it would lead to a massive increase in trading volumes, and reduced volatility, in a country that is one of the world’s top producers and consumers of agricultural commodities and a major producer of minerals. It would also enable more effective market regulation, they say………………………………………..Full Article: Source

Commodities futures up as weather threatens growers globally

Posted on 29 June 2012 by VRS  |  Email |Print

The Standard & Poor’s GSCI gauge of 24 commodities recently increased 0.8 percent to 577, being sparked by cocoa and sugar, which experienced jumps in stocks.
Cocoa and sugar were forecast to struggle as a result of the wet weather in West Africa hurting the crops, driving futures up, according to Reuters………………………………………..Full Article: Source

Derivatives watchdog defends global reach

Posted on 27 June 2012 by VRS  |  Email |Print

The Commodity Futures Trading Commission (CFTC), accused by a top broker in off-exchange financial derivatives of wanting to regulate the world, said on Tuesday new rules will inevitably reach beyond its borders to police the $460 trillion market.
Regulators across the globe face an end of year deadline to turn pledges made by leaders of the G20 group of the world’s biggest economies to regulate the market, which is dominated by about 15 major banks such as Goldman Sachs, Deutsche Bank and Morgan Stanley who mostly trade in London and New York………………………………………..Full Article: Source

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Regulator proposes new rule for large derivatives trades

Posted on 26 June 2012 by VRS  |  Email |Print

Wall Street traders making big bets on derivatives would receive relief from regulation only if they met certain standards under a rule proposed on Monday. The Commodity Futures Trading Commission voted to introduce a draft rule that limits how firms can qualify for exemptions through so-called block trades.
Banks and brokerage firms place the trades, large private transactions typically negotiated outside the scope of an exchange, as a service to investors that want to purchase a big bulk of derivatives………………………………………..Full Article: Source

Multi Commodity Exchange becomes world’s third biggest commodity futures exchange

Posted on 22 June 2012 by VRS  |  Email |Print

Mumbai-headquartered Multi-Commodity Exchange (MCX) has recently announced that it became world’s third biggest commodity futures exchange in 2011 in terms of volume of contracts. It was ranked 6th in 2010 and has overtaken Europe’s Intercontinental Exchange and China’s Shanghai Futures Exchange and Dalian Commodity Exchange.
MCX mentioned its volumes jumped 75.5% to 346.2 million contracts in 2011, while the volumes of CME group, which includes CME, CBOT and NYMEX, grew 11.2% to 677.2 million contracts to take the first position. Zhengzhou Commodity Exchange in China was second with 406.4 million contracts trading in 2011………………………………………..Full Article: Source

India: Gold futures may remain rangebound

Posted on 20 June 2012 by VRS  |  Email |Print

Gold futures may remain rangebound after it hit a new high on Tuesday. It may trade between Rs 30,100 to Rs 30,200 per 10 gram.
Gold for August delivery at the Multi Commodity Exchange had closed at Rs 30,201 on Tuesday. It registered a record high of Rs 30,425 as rupee depreciated against dollar………………………………………..Full Article: Source

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Commodity investing: How to trade sugar futures

Posted on 15 June 2012 by VRS  |  Email |Print

As far as soft commodities are concerned, sugar futures offer a compelling investment thesis, as their solid liquidity and high volatility make them ideal for active traders looking to make a profit.
The commodity is also well-known for sticking to a relatively consistent seasonal pattern, allowing for its movements to be somewhat predictable depending which harvest season is upcoming. However, in the grand scheme of things, many traders may focus their efforts on the more popular commodities like natural gas and gold………………………………………..Full Article: Source

Banks should be allowed in commodity futures: FMC

Posted on 15 June 2012 by VRS  |  Email |Print

The commodity markets regulator in India wants the government to allow trading of futures by banks to boost participation and liquidity.
“The issue is under consideration in the ministry of finance,” said Ramesh Abhishek, chairman of the Forward Markets Commission (FMC), which is governed by the ministry of consumer affairs, food and public distribution. “We want the banks to participate in these markets only for the purpose of hedging.”……………………………………….Full Article: Source

Govt backs banks’ entry into commodity futures trading

Posted on 04 June 2012 by VRS  |  Email |Print

The government is set to remove the legal hurdle in the entry of banks into commodity futures trading, despite the Reserve Bank of India’s reservations on the issue. Banks can now trade in shares, bonds and currencies, but Section 8 of the Banking Regulation Act prohibits them from trading in goods.
But, the finance ministry has now supported the consumer affairs ministry’s proposal to amend the law, as it would provide a hedging tool for banks. Sources familiar with the developments say the Banking Laws Amendment Bill is likely to be tabled in the Monsoon session of Parliament………………………………………..Full Article: Source

Are commodities at risk of de-financialization? Kemp

Posted on 31 May 2012 by VRS  |  Email |Print

Unless returns on commodity futures and options start to pick up soon, institutional investors may sour on the asset class and scale back or terminate their exposure to it, ending a decade-long trend that has seen increasing financial involvement in commodity derivatives.
The first five months of 2012 have brought more disappointment for pension funds and other investors with a long position in a diversified basket of commodity futures………………………………………..Full Article: Source

Shanghai ready to realise its destiny as top commodity trading platform

Posted on 31 May 2012 by VRS  |  Email |Print

Shanghai’s futures exchange is another step closer to what is no doubt its intended role as the globe’s premier commodity trading platform.
Now it plans to get in on crude oil trading by the end of the year as part of a longer-term plan to have these Chinese contracts getting equal pegging with existing contracts such as Brent crude futures………………………………………..Full Article: Source

Ag future is looking good

Posted on 28 May 2012 by VRS  |  Email |Print

The outlook for agriculture remains positive in Australia, according to ABARES agricultural commodities and trade assistant secretary and chief commodity analyst Jammie Penm.
Penm told the conference that despite flooding in 2011 in Queensland, Victoria and New South Wales, the agricultural industry had performed well in the past 12 months. Agricultural commodities would be worth $35.5 billion this year, and commodity values were expected to remain at a similar level in the short term, until 2016 to 2017………………………………………..Full Article: Source

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China Financial Futures Exchange: To discuss cross-listing products with exchanges overseas

Posted on 18 May 2012 by VRS  |  Email |Print

The China Financial Futures Exchange said Thursday it is planning to hold discussions with overseas exchange operators about the feasibility of cross-listing products.
China’s only national financial derivatives marketplace said in a statement it is also in touch with the World Federation of Exchanges and plans to apply to join the international organization this year………………………………………..Full Article: Source

Shanghai Futures Exchange starts a silver futures trade

Posted on 07 May 2012 by VRS  |  Email |Print

Silver and China are coming full circle. In the mid-1930s the academic journal Foreign Affairs noted how “the world was startled by the news that China had abandoned the silver standard” after foreign miners began dumping surplus metal into China.
Seventy-eight years later, this coming Thursday, the Shanghai Futures Exchange begins trading silver contracts. China Daily noted there had been an absence of silver trading ability in China and — significantly — it would make the market more liquid………………………………………..Full Article: Source

Major steps in commodity futures market: NCDEX

Posted on 04 May 2012 by VRS  |  Email |Print

Most of the agricultural commodities traded on the domestic exchanges are under the “Compulsory Delivery” system wherein it is mandatory for sellers to deliver goods upon the expiry of the contract.
In a move which gives the seller an option to tender delivery much before the expiry of the contract, the Regulator has introduced a system of staggered delivery in Compulsory Delivery contracts which could go a long way towards easing pressures towards the expiry of the contract and facilitate convergence in the futures and underlying physical markets………………………………………..Full Article: Source

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Initiatives promote commodity derivatives in Brazil

Posted on 04 May 2012 by VRS  |  Email |Print

Recent initiatives may encourage more players to the Brazilian commodity derivatives market, but there are still many obstacles to its growth.
The Brazilian commodity derivatives market, up to now very much the poor relation of its liquid financial markets, could be set for growth, thanks to some recent initiatives aimed at encouraging more players to the market………………………………………..Full Article: Source

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EU should crack down on commodity speculation

Posted on 04 May 2012 by VRS  |  Email |Print

The European Union should bring in regulations to limit the impact of financial speculators on global commodity prices.
A joint statement from 25 civil society organisations, including Oxfam, the World Future Council, and the European Network on Debt and Development, called for EU regulators to bring in rules governing the amount of trades speculators can carry out on commodities markets………………………………………..Full Article: Source

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Zimbabwe: How derivatives can help revive agriculture

Posted on 02 May 2012 by VRS  |  Email |Print

Derivatives are financial instruments (contracts) that do not represent ownership rights in any asset but, rather, derive their value from the value of some other underlying commodity or other asset. When used prudently, derivatives are efficient and effective tools for isolating financial risk and “hedging” to reduce exposure to risk.
Derivatives increase the financial markets’ depth and encourage innovation that reduces reliance on cash………………………………………..Full Article: Source

Indian commodity futures post first fall in volume

Posted on 27 April 2012 by VRS  |  Email |Print

India’s commodity futures turnover posted its first-ever drop in the two weeks to April 15, as traders took to the sidelines fearing more bans after guar trade was suspended and as striking jewellers stayed away from hedging.
The turnover dropped 13.5 per cent from a year earlier to 5.13 trillion rupees ($97.21 billion) during April 1-15, the commodities market regulator Forward Markets Commission (FMC) said………………………………………..Full Article: Source

BNP Paribas grows commodity derivatives business

Posted on 17 April 2012 by VRS  |  Email |Print

BNP Paribas Corporate and Investment Banking is pleased to announce the appointments of John Bills, Mike Collens and Chris Zammit to its Commodity Derivatives business. John Bills joins in New York as Managing Director, Commodity Structured Origination - Americas, reporting to Simon Dent, Head of Structured Origination.
Chris Zammit joins in New York as Director, Commodity Derivatives of Power Trading, and will report to Dora Sung, Head of US Energy Commodities Trading. Mike Collens, joins as Director, Natural Gas trader in Calgary, Canada and will report to Bruce Bianchini, Head of Energy Trading, Canada. (Press Rerlease)

FMC to keep a close watch on huge speculative trading on exchanges

Posted on 16 April 2012 by VRS  |  Email |Print

The Forward Markets Commission (FMC) is considering plans to upgrade its integrated monitoring system in a few months. This will help the commodity market regulator to keep a close watch on possible speculative or illegal trading on commodity bourses.
“The commission, with the help of commodity exchanges, is thoroughly assessing the past records of trading and is all set to put an effective mechanism in place to curtail any speculative trading in the future,” says a top official of FMC………………………………………..Full Article: Source

Analyse commodity futures market to curb volatile food prices: UN

Posted on 13 April 2012 by VRS  |  Email |Print

United Nations (UN) has called for action to curb food price volatility and suggested a proper analysis of global commodities futures market to discourage speculation that leads to price fluctuations.
“Food and nutritional security are the foundations of a decent life. Action to curb food price volatility is essential,” UN Secretary General Ban Ki Moon said in a message to the General Assembly’s high-level debate on ‘Excessive Price Volatility in Food and Related Commodity Markets’………………………………………..Full Article: Source

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India: FMC mulls monitoring body for future contracts

Posted on 13 April 2012 by VRS  |  Email |Print

The Forward Markets Commission (FMC), the commodity derivatives market regulator, is contemplating a 12-15 member monitoring body for each agri commodity currently traded on the futures platform.
The body would comprise a member of FMC and one from each national commodity exchange, while the remaining members are proposed to be nominated by the regulator from the industry, including trade associations, producer and consumer sectors………………………………………..Full Article: Source

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Indian commodity futures turnover up 51.7pct in FY12

Posted on 12 April 2012 by VRS  |  Email |Print

Futures turnover at commodity bourses in India, the world’s biggest buyer of bullion and second largest wheat grower, jumped 51.7% to Rs 181,26,000 crore in the last fiscal year, spurred by gold and agricultural commodities.
Volumes in agricultural commodities jumped 50.79% to Rs 21,96,000 core in the fiscal year that ended in March, while bullion futures volumes jumped 85.33% to Rs 101,81,999 crore, data from the regulator showed………………………………………..Full Article: Source

CME group to tighten oversight of futures firms

Posted on 05 April 2012 by VRS  |  Email |Print

CME Group Incwill tighten scrutiny of futures firms in the wake of the MF Global collapse, focusing on the way in which they safeguard customer funds.
The breakdown in segregating customer and broker funds at MF Global dealt a severe blow to the futures industry’s credibility and revealed failures in a system that had been the bedrock of industry oversight for decades………………………………………..Full Article: Source

U.S. futures regulator accuses RBC of trading scheme

Posted on 03 April 2012 by VRS  |  Email |Print

The U.S. futures regulator accused the Royal Bank of Canada on Monday of running a multi-hundred-million-dollar trading scheme to gain lucrative Canadian tax benefits.
The Commodity Futures Trading Commission’s civil lawsuit alleges that a small group of senior RBC employees created and managed a “wash trading” strategy in which they improperly coordinated to allow subsidiaries of the bank to buy and sell stock futures without taking a position in the market………………………………………..Full Article: Source

India to cut position limits in some agri commodity futures

Posted on 03 April 2012 by VRS  |  Email |Print

Commodity market regulator plans to cut the number of contracts any member can hold in agricultural commodities in line with production estimates to curb excessive speculation, its head said on Monday, a week after banning guar futures trading.
“We have reports that production of some agricultural commodities have gone down or may go down this year. We are going to rationalise position limits (the number of contracts individual members can hold) accordingly,” Ramesh Abhishek, chairman of the Forward Markets Commission (FMC), told Reuters………………………………………..Full Article: Source

Commodity derivatives rules may be toughened by EU lawmakers

Posted on 28 March 2012 by VRS  |  Email |Print

European Union lawmakers may seek to toughen planned curbs on speculation with commodity derivatives as part of an overhaul of financial-market rules.
Markus Ferber, the lawmaker leading work on the measures in the European Parliament, is proposing to force venues to limit the number of commodity-derivative contracts that traders can enter into, according to a report sent by his office………………………………………..Full Article: Source

EU commodity market regulation battle commences

Posted on 27 March 2012 by VRS  |  Email |Print

The battle over EU commodity market regulation commences this week, with key bureaucrats meeting in Brussels tomorrow to thrash out an agreement on regulation of commodity derivative markets.
The European Parliament’s rapporteur for the review of the Markets in Financial Instruments Directive (MiFID), German MEP Markus Ferber, said on Friday that he intends to introduce strong controls on financial speculation in these markets - Commodities Now………………………………………..Full Article: Source

How to trade gold with ETFs and options

Posted on 22 March 2012 by VRS  |  Email |Print

Larry D. Spears writes: With few exceptions, most leading financial gurus agree that every portfolio should include some physical gold. But while the yellow metal itself is great as a long-term hedge against turmoil and inflation, it’s a lousy trading vehicle.
Here’s why. For shorter-term trading purposes, most gold investors look first to the futures markets, generally focusing on either the CME Group’s full-size COMEX contract, which represents 100 ounces of the metal, currently valued around $165,000, or its little brother, the 50-ounce miNY gold future………………………………………..Full Article: Source

Commodities investors: Little movement in advance of central clearing rules

Posted on 20 March 2012 by VRS  |  Email |Print

Investors in Europe and the United States are on notice that they will eventually be required to execute OTC derivatives trades through centrally cleared transactions. As of late 2011, however, most investors in these markets had not moved to change trading practices to accommodate the incoming rules.
From 2010 to 2011 OTC derivatives investors executed 81% of transaction volume through bilateral OTC contracts and 19% through centrally cleared OTC contracts. Although central clearing rules are moving toward implementation, 60% of these investors have no plans to change the share of their business conducted through centrally cleared trades………………………………………..Full Article: Source

A quick intro to commodity futures markets

Posted on 12 March 2012 by VRS  |  Email |Print

Let’s quickly cover something for those new to futures: In case you weren’t certain, “futures trading” and “commodities trading” are basically the same thing. Futures contracts cover the broad range of commodity markets energy, metals, agriculturals, softs, livestock though they also cover financial markets as well (indices, currencies, interest rates, single stock futures).
A futures contract is simply an agreement to buy or sell at a price set today, for a future delivery date of the commodity in question………………………………………..Full Article: Source

Dalian Exchange plans to start coking-coal futures in 2012, official says

Posted on 08 March 2012 by VRS  |  Email |Print

China is planning to start a coking coal futures contract in the first half, Liu Xingqiang, general manager at the Dalian Commodity Exchange, told reporters.
The bourse is “steadily proceeding with the launch” and has been getting approval from regulators, Liu said today in Beijing where he’s attending the National People’s Congress………………………………………..Full Article: Source

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