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Ghana Commodity Exchange exchange to provide collateral to farmers

Posted on 23 June 2016 by VRS  |  Email |Print

The Ghana Commodity Exchange has introduced an initiative that will make it possible for farmers to access loans from banks using their produce as collateral.
Under the initiative dubbed ‘Warehouse Receipts System’, farmers or traders who subscribe to the GCX platform will be granted a receipt covering their goods after depositing them at the various warehouses set up by the Exchange. The receipt can then be presented to banks to serve as collateral in the event that holders want to access loans………………………………………..Full Article: Source

Commodities exchange to begin trading 2017

Posted on 22 June 2016 by VRS  |  Email |Print

The team working on Ghana’s commodities exchange, the first in West Africa, is confident trading on the exchange will commence in the first quarter of 2017 - starting with Maize, Rice and Soy-beans. Launched by President John Mahama a year ago, the Ghana Commodities Exchange (GCX) will serve as a common platform for trading local commodities in a transparent and uniform manner with a view to giving farmers a ready market and improving livelihoods.
With institutions like Wienco and the National Food Buffer Stock Company (NAFCO) in the fray, Project Coordinator Robert Dowuona Amoo is confident trading will see a soft launch this October or November, with full-scale operation and trading taking off in the first quarter of 2017………………………………………..Full Article: Source

Indian regulator Sebi plans checklist to approve listing for commodities futures trade

Posted on 21 June 2016 by VRS  |  Email |Print

Capital markets regulator Sebi plans to have a 13-point checklist to approve the listing and delisting of commodities from futures trading, two persons aware of the development told ET. The rules were slated to be discussed by Sebi with the commodity derivatives advisory committee (CDAC) sub-group on new products and participants on Monday.
Sebi will seek the feedback of CDAC before finalising the checklist. “The structured note will consider the objective and subjective parameters of the checklist before finalising it,” said one of the persons. “The objective part will comprise issues of liquidity, production statistics, shelf life, etc. The subjective part will examine issues of political sensitivity of the commodity, whether it’s widely dispersed, internationally traded, susceptibility to cartelisation, etc,” he added………………………………………..Full Article: Source

HK Exchanges makes new bid to boost China metal market role

Posted on 15 June 2016 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd, which bought the London Metal Exchange in 2012 for $2.2 billion, plans to start a metals trading platform in the first half of next year in southern China as it bids to secure a foothold in the world’s biggest consumer and producer of raw materials.
Grappling with a slide in volumes after a fee increase, and shrinking profits from commodities, the bourse aims to provide a marketplace for physical metals that will eventually generate benchmark prices in China. Futures in the country have traditionally been dominated by day-trading speculators and the HKEX model is specifically targeted at physical users, producers and traders………………………………………..Full Article: Source

HKEX Makes New Bid to Boost Metal Market Role in Mainland China

Posted on 14 June 2016 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd., which bought the London Metal Exchange in 2012 for $2.2 billion, plans to start a metals trading platform in the first half of next year in southern China as it bids to secure a foothold in the world’s biggest consumer and producer of raw materials.
Grappling with a slide in volumes after a fee increase, and shrinking profits from commodities, the bourse aims to provide a marketplace for physical metals that will eventually generate benchmark prices in China………………………………………..Full Article: Source

Kenya ripe for commodity exchange market, experts say

Posted on 14 June 2016 by VRS  |  Email |Print

Speaking ahead of a Commodity Trading and Risk Management Seminar that gets underway today, Kenya National Chamber of Commerce and Industry CEO Matanda Wabuyele said such a market would save farmers from low prices offered by speculative middlemen.
“It will be a platform where buyers and sellers meet with certain rules and conditions to ensure that people are able to sell their commodities in a transparent way and hedging against price volatility,” said Wabuyele. A commodity market trades in primary economic sectors such as agricultural products and minerals as opposed to manufactured products. In the region, Ethiopia and Rwanda have such markets………………………………………..Full Article: Source

HKEX to establish national spot metals platform in China early next year, says official

Posted on 08 June 2016 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing, which owns the London Metal Exchange, the world’s largest metals bourse, plans to set up a national platform for spot metals trading in Qianhai, China to tap into the huge need among Chinese companies to diversify raw material supply sources and hedge exposure to price volatility, a top HKEX official said Tuesday.
HKEX is currently building a trading system for the project and will register a company in the Qianhai special economic zone in Shenzhen and hire appropriate talent, said Li Gang, co-head of the market development division for HKEX………………………………………..Full Article: Source

London Metal Exchange faces new challenge

Posted on 08 June 2016 by VRS  |  Email |Print

If you want to understand why some members of the London Metal Exchange (LME) are so unhappy with the way things are going that they are considering forming their own metals-trading platform, look no further than the latest exchange notice to members.
Dated Monday, the LME said it has received an application for exchange membership from Jump Trading Futures LLC. If accepted as a Category 3 (”Associate Trade Clearing”) member, Jump Trading will be able to trade and clear its own business on the LME but won’t be able to issue client contracts or trade on the open-outcry ring………………………………………..Full Article: Source

Commodities break into bull market, turning TSX into a global leader

Posted on 07 June 2016 by VRS  |  Email |Print

Commodities from oil to gold have ended their epic swoon – and, in the process, turned Canadian stocks into some of the world’s hottest offerings. The Bloomberg Commodity Index, which tracks 22 raw materials, finished Monday more than 20 per cent above its low on Jan. 20, meeting the most common definition of a bull market.
The new exuberance in raw materials prices has shaken the Canadian stock market out of last year’s slump and transformed it one of the best-performing exchanges in the world so far in 2016. Monday’s trading extended the winning streak in the S&P/TSX composite index, which entered a bull market of its own late last week………………………………………..Full Article: Source

China commodity exchange to curb speculation

Posted on 31 May 2016 by VRS  |  Email |Print

Dalian Commodity Exchange (DCE) will closely monitor the commodity market to stop illicit trading, said vice general manager Wang Fenghai. Wang said that spot prices of some commodities swung violently this year and he had seen signs of excessive speculation in the trading of coal and metal-related futures since April.
The DCE, one of China’s four futures exchanges, has raised deposits and commission for heavily traded futures, among other measures to curb speculation and maintain market order………………………………………..Full Article: Source

EFSA finalises amendments to commodity exchange draft law

Posted on 31 May 2016 by VRS  |  Email |Print

The Egyptian Financial Supervisory Authority (EFSA) finalised the amendments to the draft law 95 of 1992 to establish a commodity exchange in the Capital Market, and intends to discuss them with the parties of the capital market in the coming days, chairperson of the authority Sherif Samy told Daily News Egypt.
He explained that the new regulations of the law are designed to regulate the relationship between the parties that deal with trading goods contracts, which include the exchange market itself, the suppliers of goods, brokerage firms, and traders of these contracts………………………………………..Full Article: Source

India: Merger of FMC with Sebi restored confidence on regulatory oversight of commodities

Posted on 26 May 2016 by VRS  |  Email |Print

The merger of erstwhile commodities regulator Forward Markets Commission (FMC) with the Securities and Exchange Board of India ( Sebi) was a landmark change in the regulatory sphere over the past two years, which also marked a beginning in the direction of forming a unified financial regulator.
Regulators in India’s capital markets have been the direct outcome of scams, which were the result of loopholes and the lack of an authority to enforce rules………………………………………..Full Article: Source

Turnover on Chinese commodity exchanges surged by $183 billion

Posted on 12 May 2016 by VRS  |  Email |Print

From the Dutch tulip craze of 1637 to America’s dotcom bubble at the turn of the century, history is littered with speculative frenzies that ended badly for investors. But rarely has a mania escalated so rapidly, and spurred such fevered trading, as the great China commodities boom of 2016.
Over the span of just two wild months, daily turnover on the nation’s futures markets has jumped by the equivalent of $183 billion, outpacing the headiest days of last year’s Chinese stock bubble and making volumes on the Nasdaq exchange in 2000 look tame……………………………………….Full Article: Source

China steel, iron ore futures dive as demand worries batter commodities

Posted on 10 May 2016 by VRS  |  Email |Print

Chinese commodities dived on Monday, led by 6 percent falls in steel and iron ore futures, as deepening worries about China’s demand extended a fortnight of sharp drops and false rebounds in the country’s market for industrial metals.
Speculative funds rushed into China’s commodities futures last month, betting the country’s economy was bottoming. The buying frenzy alarmed domestic exchanges and regulators fearing a bubble could be forming as volumes and prices soared………………………………………..Full Article: Source

Tanzania: Commodities Exchange Ready for Rollout Next July

Posted on 10 May 2016 by VRS  |  Email |Print

Tanzania Mercantile Exchange (TCX) is set to start operations in the next fiscal year after tackling some issues related to warehouse receipt. TCX is expected to start with cashew nut whose marketing season is between September and January.
The cash crop was chosen, thanks to its warehouse receipt system already in place. Capital Markets and Securities Authority (CMSA) Public Relations Manager Charles Shirima said in Dar es Salaam over the weekend that currently experts are doing gap analysis study to ascertain the challenges that affected the warehouse systems prior to a sensitisation campaign for the launch of exchange………………………………………..Full Article: Source

World’s first diamond trading exchange going live from today

Posted on 05 May 2016 by VRS  |  Email |Print

The Singapore Diamond Investment Exchange (SDiX), the world’s first and only commodity exchange trading in physically settled diamonds, is going live from Thursday. This could change the way diamonds are traded.
At present, trading is done after viewing diamonds and usually one on one. Once the exchange picks up, it will be portal-based and with transparent pricing. This could also bring investors into diamonds………………………………………..Full Article: Source

Indian regulator Sebi may allow options in select commodities

Posted on 04 May 2016 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) is in talks with leading commodity exchanges about allowing options trading in select commodities. According to sources, the Multi Commodity Exchange might be allowed to introduce options in two metals, while the National Commodity & Derivatives Exchange (NCDEX) could be permitted options in two commodities from the oil complex.
“There is a vital need in the interest of the Indian economy to deepen the commodity derivatives market to attain the basis objectives of price discovery and provision of a platform for risk mitigation. The structural characteristics of options make them significantly attractive as a tool for price risk management.”……………………………………….Full Article: Source

BSE, NSE fail to get nod for commodity trading platforms

Posted on 02 May 2016 by VRS  |  Email |Print

The Securities and Exchange Board of India or Sebi is creating a level playing field by restricting the entry of established players, says an expert. The Securities and Exchange Board of India (Sebi) has decided against allowing the two national stock exchanges to launch commodity trading platforms in the near term, said three people familiar with the development.
Both the National Stock Exchange of India Ltd (NSE) and BSE Ltd had sought permission to launch commodity trading on their exchanges after Sebi began regulating the commodity markets last year………………………………………..Full Article: Source

China securities regulator orders major commodities exchanges to control futures speculation

Posted on 29 April 2016 by VRS  |  Email |Print

China’s securities regulator ordered the country’s major commodity futures exchanges this week to control speculative trading activity, sources told Reuters, after a surge in prices sparked fears of a boom-and-bust cycle.
In response, commodity futures exchanges in Dalian, Shanghai and Zhengzhou ordered major institutional investors that lack a commodities background to rein in their trading, three people with direct knowledge of the situation said. The sources didn’t define what was meant by a lack of background in commodities………………………………………..Full Article: Source

Iron ore, steel lead China commodities retreat as curbs bite

Posted on 28 April 2016 by VRS  |  Email |Print

A major Chinese commodities exchange took further steps to calm volatile markets on Wednesday, hiking transaction fees and widening trade limits in a move that could make exiting futures contracts more orderly.
Iron ore and steel futures fell again in reaction to higher trading costs, brought in to deter speculative investors believed to be behind last week’s spike in prices and volumes that had stoked fears of a destabilizing crash. The Dalian Commodity Exchange said it would double the transaction fees on steelmaking raw materials coking coal and coke futures from Thursday, the fourth increase in a week………………………………………..Full Article: Source

Nasdaq mulls new exchange to ease trading in illiquid ETFs - CEO

Posted on 28 April 2016 by VRS  |  Email |Print

The acquisition of U.S. options exchange operator ISE from Deutsche Boerse AG was approved by the U.S. Department of Justice last week, Robert Greifeld, Nasdaq’s chief executive officer, said on a call with analysts.
The deal still needs approval from the U.S. Securities and Exchange Commission, but could close as early as the end of the quarter, versus earlier guidance of the second half of the year, he said on the call following the announcement of Nasdaq’s first-quarter earnings, which topped expectations………………………………………..Full Article: Source

Indian regulator mulls single licence for equity, commodity brokers

Posted on 27 April 2016 by VRS  |  Email |Print

Markets regulator Sebi plans to introduce single license mechanism for equity and commodity brokers. The issue was discussed last week when Sebi chairman U K Sinha met domestic brokers. The proposed move is expected to reduce financial burden on brokers and would also help investors access equity and commodity markets through a single demat account, market participants said.
The proposal comes within a year since commodity market regulator Forward Markets Commission (FMC) was merged with the Securities and Exchange Board of India (Sebi)………………………………………..Full Article: Source

All you wanted to know about the Shanghai Gold Fix

Posted on 26 April 2016 by VRS  |  Email |Print

China’s displeasure over the dollar’s supremacy in global financial markets is no secret. The Chinese feel the yuan should rightfully be the preferred reserve currency of all nations. In yet another move to dethrone the dollar, China has now decided to get its own gold benchmark that will be denominated in yuan.
While the Shanghai Gold Fix may not immediately have an impact on international gold prices, it does help diminish the need for the dollar. Gold prices will now be fixed twice every day in China, based on the contracts traded on the Shanghai Gold Exchange. Shanghai gold fix will compete with the popular benchmark, the London Fix, which is set by the London Bullion Market Association………………………………………..Full Article: Source

Hong Kong’s local gold exchange to work with ICBC in launch of Shenzhen services

Posted on 25 April 2016 by VRS  |  Email |Print

Warehousing and physical settlement service planned for Qianhai free trade zone. The Hong Kong gold exchange has teamed up with Industrial and Commercial Bank of China (ICBC) to launch gold trading services in the Qianhai free trade zone in September, providing custodial and physical settlement service targeted at commercial users and precious metals traders, according to the exchange head.
Haywood Cheung Tak-hay, the honorary permanent president of the 105-year-old Chinese Gold and Silver Exchange Society, said the exchange has teamed up with ICBC to use its gold vault in Qianhai as a temporary bonded warehouse for Hong Kong traders and manufacturers to store their gold………………………………………..Full Article: Source

China launches yuan gold fix to boost power in global bullion market

Posted on 20 April 2016 by VRS  |  Email |Print

Top gold consumer China launched a yuan-denominated gold benchmark on Tuesday, in an ambitious move to exert more control over pricing of the metal and influence in the global bullion market.
The benchmark is a culmination of efforts by China over the last few years to reform its domestic gold market, attempting to gain a bigger say in the bullion industry, long dominated by London where the global spot benchmark price is set. As the world’s top producer, importer and consumer of gold, China has baulked at depending on a dollar price in international transactions, and believes its market weight should entitle it to set the price of gold………………………………………..Full Article: Source

Commodity futures lead charge in exchange-traded derivatives

Posted on 19 April 2016 by VRS  |  Email |Print

Exchanges hope to capture a larger share of derivatives trading, on demand from emerging markets. Trading in commodity and currency derivatives surged on the world’s exchanges last year as traders in emerging economies used futures to hedge themselves against rising market volatility.
Overall volumes for exchange-traded derivatives rose 12 per cent to 23.4bn contracts in 2015, the first increase in four years, according to annual data collated by the World Federation of Exchanges, a trade association for 200 market infrastructure operators………………………………………..Full Article: Source

Senate committee approves authorization for U.S. commodities regulator

Posted on 15 April 2016 by VRS  |  Email |Print

The U.S. Senate Agriculture Committee on Thursday approved a reauthorization of the Commodity Futures Trading Commission, nearly three years after the legislative authority for the country’s commodities and swaps regulator expired. The head of the CFTC, Timothy Massad, praised the committee for clearing the way for the full Senate to vote on authorization.
“I am committed to continuing to work with Congress throughout this process, particularly on making sure end-users like agricultural producers can continue to safely and affordably use the derivatives markets, while ensuring these markets do not generate excessive risk to our financial system,” he said in a statement………………………………………..Full Article: Source

EEX acquires 100% of Cleartrade Exchange

Posted on 15 April 2016 by VRS  |  Email |Print

The European Energy Exchange (EEX), the leading energy exchange in Europe, part of Deutsche Börse Group, will acquire the remaining shares in the Singapore-based Cleartrade Exchange (CLTX) from Freight Investor Holdings. The transaction will take effect as of 15th April 2016.
With this transaction, EEX further strengthens its commitment to become a global commodity exchange developing new asset classes and geographies, whilst continuing growth of its core markets. “With this transaction we are taking a further important step towards the expansion of EEX Group beyond Europe and beyond the energy sector”, explains Peter Reitz, Chief Executive Officer of EEX………………………………………..Full Article: Source

Indian Regulator mulls single licence for equity, commodity brokers

Posted on 12 April 2016 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) is working on a plan to allow a single licence for equity and commodity brokers, a move that will help the broking community reduce costs. Though both security and commodity market intermediaries are now regulated by Sebi, following the absorption of Forward Markets Commission (FMC) into it, they still adhere to different guidelines and requirements.
Sebi has initiated an exercise to have a common set of these. “Once the commodity market stabilises, we will allow each lot of brokers to operate in the other segment. It will be done in a gradual and phased manner, so the market isn’t disrupted in any way,” a senior Sebi official said………………………………………..Full Article: Source

ICEX plans re-launch in June

Posted on 12 April 2016 by VRS  |  Email |Print

Reliance Capital-anchored Indian Commodity Exchange (ICEX) on Monday announced it plans to re-launch the exchange in two months, following the successful completion of its rights issue, which was fully subscribed by stakeholders.
The exchange was contemplating a rights issue for long and it was supposed to increase its net worth to meet regulatory criteria. “The board of directors of ICEX, in a meeting held in Mumbai on Monday, took on record that the ICEX rights issue has been fully subscribed at 100 per cent premium to face value, valuing the exchange at Rs 250 crore,” the exchange said………………………………………..Full Article: Source

Nigerian Govt to revitalise commodity exchange

Posted on 11 April 2016 by VRS  |  Email |Print

The Federal Government plans to revitalise commodity exchange in Nigeria as part of a comprehensive development programme for the nation’s agricultural sector. Vice President Yemi Osinbajo made this known last weekend at the First National Economic Forum organised by Vintage Press Limited, the publishers of The Nation Newspapers, in collaboration with CEEDEE Resources at Lagos Airport Hotel, Ikeja, Lagos.
Osinbajo said the government would develop the commodity exchange system to support the development of the agricultural sector. He said government would revitalise the Abuja-based Nigeria Commodity Exchange (NCX) and other infrastructure and operators in the whole commodity exchange value chain………………………………………..Full Article: Source

Nigeria to revitalise commodity exchanges

Posted on 08 April 2016 by VRS  |  Email |Print

The Federal Government plans to revitalise commodity exchange in Nigeria as part of a comprehensive development programme for the nation’s agricultural sector. Vice President, Professor Yemi Osinbajo, made this known yesterday at the 1st National Economic Forum.
Osinbajo said the government would develop the commodity exchange system to support the development of the agricultural sector. He said government would revitalise the Abuja-based Nigeria Commodity Exchange (NCX) and other infrastructure and operators in the whole commodity exchange value chain………………………………………..Full Article: Source

GSIA To Support Ghana Commodity Exchange To Stimulate Trading

Posted on 08 April 2016 by VRS  |  Email |Print

Smallholder farmers and other operators along the country’s agriculture value chain are set to rake in more returns on their investments following the assurance by members of the Ghana Securities Industries Association (GSIA) to support the Ghana Commodity Exchange (GCX).
GSIA, the umbrella body for brokerage firms in the country, backed the operations of the GCX and expressed the desire for the establishment of a robust regulatory and legal framework that will stimulate trading on the commodity exchange platform………………………………………..Full Article: Source

India: NSE seeks Sebi nod for commodity futures trade

Posted on 06 April 2016 by VRS  |  Email |Print

NSE, the country’s largest stock exchange, has recently written to Sebi seeking regulatory approval to launch a commodity futures trading segment. The other leading stock bourse, BSE, had made a similar request some months ago.
“Requests have been received from the stock exchanges for launching a commodity derivatives segment,” a Sebi official confirmed. “The request from NSE is recent while BSE’s request was received a while ago. The regulator has not yet taken a decision on the issue yet.”……………………………………….Full Article: Source

CME Remains in First Place in Terms of Volumes: FIA

Posted on 31 March 2016 by VRS  |  Email |Print

According to the trading volumes survey for 2015 published by the Futures Industry Association (FIA), the US Chicago Mercantile Exchange (CME) is still in first place among 78 exchanges of derivatives instruments in the world, reporting trading volume growth to 3.5 billion contracts (+2.6%) year-over-year (YoY).
The official press release published by the Dalian Commodity Exchange (DCE) states that all of the three commodity futures exchanges in Mainland China ranked within the top 10 entities in terms of number of contracts. DCE’s trading volumes in 2015 totaled 1.116 billion contracts which allowed its jump in the rankings to 8th position (from 10th in 2014)………………………………………..Full Article: Source

India: Sebi tightens noose on commodity exchanges

Posted on 30 March 2016 by VRS  |  Email |Print

Tightening the noose on commodity trade, the Securities and Exchange Board of India (Sebi) has directed commodity exchanges to comply with the provisions of client code modifications in equity markets within one month.
Superseding the circulars issued by the erstwhile Forward Markets Commission (FMC), Sebi directed national and regional commodity exchanges to use the facility of client code modification only in exceptional cases. “The objective of this provision is to streamline client code modifications across entire spectrum of trading including equity and commodity markets alike,” Sebi stated………………………………………..Full Article: Source

HKEx and SGE team up to develop bullion products, connect markets

Posted on 24 March 2016 by VRS  |  Email |Print

The Hong Kong Exchanges and Clearing Limited (HKEx) and the Shanghai Gold Exchange (SGE) have teamed up to possibly develop precious metals contracts and boost links between markets, the bourses said on Wednesday.
The exchanges signed a memorandum of understanding “to consider various potential areas of mutual interest, including joint development of precious metals products and cross-market connectivity,” the companies said in a statement………………………………………..Full Article: Source

LME to join warehouse operators in electronic tracking system

Posted on 23 March 2016 by VRS  |  Email |Print

The London Metal Exchange (LME) said on Tuesday it will team up with warehouse operators to register warehouses for its new electronic tracking system along China’s silk road route. The exchange, owned by Hong Kong Exchanges and Clearing (HKEx), said it will work with Henry Bath & Son, CMST Development and Mercuria Energy Trading to register warehouses.
A warehousing fraud at China’s Qingdao port in 2014 spurred the development of LMEshield, a scheme to provide electronic receipts as proof of ownership for stored metal, which has the capacity for tens of millions of tonnes of material………………………………………..Full Article: Source

Asian exchanges still lag in gold; Shanghai out to change that

Posted on 22 March 2016 by VRS  |  Email |Print

Asian exchanges, relative newcomers to the gold-trading market, are finding themselves far overshadowed by their powerful and well-established counterparts in London and New York. That said, the gold trade is still brisk in Tokyo, and Shanghai has cooked up plans to rival London as a price-setting giant.
The trading volume for gold is exactly zero at the Singapore Exchange. The exchange entered the gold futures market in autumn 2014 in the hope of tapping growing demand in Asia. But even at the time of the launch, trading was thin. Today, it is nonexistent………………………………………..Full Article: Source

Odds on, odds off: London gold market seemingly confused on best route forward

Posted on 18 March 2016 by VRS  |  Email |Print

With Cheltenham races this week, everyone is in betting mood. It would appear that the cards could be stacked in IntercontinentalExchange’s favor, as the operator has come up as an outside favourite to possibly succeed the London Bullion Market Association ‘request for proposal’ to reform the London gold market.
Why? Because the other two rumored exchanges involved in the process — the London Metal Exchange and CME Group — have already been touted, maybe? “The market is currently built on hearsay, and rumors,” said one source close to the situation………………………………………..Full Article: Source

Sebi allows commodity derivatives trading in bourses at IFSC

Posted on 18 March 2016 by VRS  |  Email |Print

India’s markets regulator Sebi has allowed trading in commodity derivatives at stock exchanges operating in International Financial Services Centre (IFSC). The move comes after amendment was made under Securities Contracts Regulation Act to include commodity derivatives as securities.
The Securities and Exchange Board of India (Sebi) last year began regulating the commodity derivatives market as well. In a circular today, Sebi said “commodity derivatives shall be eligible as securities for trading and the stock exchanges operating in IFSC may permit dealing in commodity derivatives”. ……………………………………….Full Article: Source

London gold fix rigging: Fact or fiction?

Posted on 15 March 2016 by VRS  |  Email |Print

The London Gold Market is a part of the London Bullion Market, which is a wholesale over-the-counter market for the trading gold and silver, coordinated by the London Bullion Market Association.
It is the wholesale market – the usual minimum size of transaction is 2,000 ounces of gold (while the standard size is 5,000 ounces) – individual investors are practically excluded from the market. The London Gold Market was the most important gold market until the 1970s, when the American Commodity Exchange Inc. (Comex) started to trade gold futures and soon gained prominence………………………………………..Full Article: Source

China’s Dalian commodity exchange says to combat high volatility

Posted on 11 March 2016 by VRS  |  Email |Print

China’s Dalian Commodity Exchange has stepped up measures to curb high volatility in iron ore futures trading by ending the 50 percent discount on one type of transactions and strengthening monitoring, an exchange spokesperson said in a statement on Thursday.
The official, without giving a name, said the exchange will intensify a crackdown on illegal trading to limit risk and stabilize the market………………………………………..Full Article: Source

India: Agri commodities get a mixed deal in budget

Posted on 07 March 2016 by VRS  |  Email |Print

Despite the considerable focus on the rural and agricultural sectors in the Budget, commodity market participants have been disappointed on a few fronts. One major expectation was the removal of commodity transaction tax (CTT) which was introduced in July 2013, which hasn’t come about.
Trading volumes on the bourses have dropped sharply in the last three years with the declines attributed to CTT, global commodity price declines and the NSEL crisis. Trading volume at the MCX has shrunk by a third in 2014-15 from its peak of ₹1.5 lakh crore in 2011-12. At the NCDEX, trading turnover has almost halved to ₹10 lakh crore in this period. One also hoped that the Finance Minister would finally let financial institutions, including asset management companies, participate in commodity futures………………………………………..Full Article: Source

Indian regulator Sebi upgrading surveillance for commodity exchanges

Posted on 04 March 2016 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) and the National Commodity & Derivatives Exchange (NCDEX) are taking measures to improve improve surveillance after issuing restraining orders against 16 entities for manipulating castor seed futures.
Now, the regulator will focus on tightening surveillance. It is also focusing on improving governance and risk management levels at commodity exchanges. NCDEX is also investigating whole episode forensically. The exchange has also beefed up surveillance to watch spot market developments……………………………………….Full Article: Source

HKEx plans for spot commodity markets in China would involve physical delivery

Posted on 03 March 2016 by VRS  |  Email |Print

Plans by Hong Kong Exchanges and Clearing to create mainland, physically deliverable spot commodity markets are a way of getting the London Metal Exchange’s warehousing expertise into China, HKEx Chief Executive Charles Li said on Wednesday.
In its 2016-2018 Strategic Plan released earlier this year HKEx said it would explore the possibility of creating a mechanism for spot commodity trading in China supported by a warehousing and financing platform……………………………………….Full Article: Source

LSE Suitors Likely to Face Antitrust Hurdles

Posted on 02 March 2016 by VRS  |  Email |Print

Regulators to focus on implications of merging potential buyers’ clearinghouse businesses with London Stock Exchange, analysts say. The most coveted asset owned by London Stock Exchange Group PLC could also be what brings down any deal to buy it.
A potential bidding war for LSE emerged Tuesday between Intercontinental Exchange Inc., CME Group Inc. and Deutsche Börse AG. Analysts agree that any of the three buyers would have to persuade authorities that a combination of their clearinghouse businesses with LSE’s can pass antitrust muster………………………………………..Full Article: Source

Nasdaq Commodities launches seven new European power and gas markets

Posted on 02 March 2016 by VRS  |  Email |Print

Nasdaq Commodities has launched seven new European power markets and seven European gas markets, providing trading and clearing on Nasdaq Oslo ASA and Nasdaq Clearing AB, the Norwegian exchange said Tuesday.
The offering expands Nasdaq’s power market coverage to French, Belgian, Spanish and Italian contracts — in addition to existing German, UK and Dutch derivatives. Gas market coverage will increase to include Dutch TTF, German NCG and Gaspool, UK NBP, French Peg Nord and TRS and Belgian ZEE………………………………………..Full Article: Source

India: What commodity markets want from FM

Posted on 29 February 2016 by VRS  |  Email |Print

The Indian markets are gearing up for the big event today — the Union Budget. We take a look at what the commodity market participants expect from it. If there is one wish that tops the list for almost all participants in the commodity sector, it is the removal of the commodity transaction tax (CTT) that was introduced in July 2013.
This tax is levied on the sale transaction of the commodity futures except for exempted agricultural commodities such as chana, soyabean, turmeric, etc. The introduction of this tax has taken trading volumes sharply lower in both the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX)………………………………………..Full Article: Source

Lawmakers Urge Commodities Agency to Keep Plan to Limit Futures Contracts

Posted on 26 February 2016 by VRS  |  Email |Print

Lawmakers heaped criticism on an advisory committee report to the Commodity Futures Trading Commission recommending that the agency scrap its proposed rule on position limits in derivatives trading. The report and a dissenting opinion were presented at a meeting of the commission on Thursday.
The report, which was approved 8 to 1 by the Energy and Environmental Markets Advisory Committee, says that federally mandated position limits are not necessary and that the C.F.T.C. should not enact the rule it has been working on. It adds that if the agency goes ahead with the rule, it needs substantial changes………………………………………..Full Article: Source

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