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HKEx aims to establish spot commodity trading platform in China

Posted on 22 January 2016 by VRS  |  Email |Print

Hong Kong Exchanges and Clearing Limited aims to explore creating a spot commodity trading and financing platform in China, said Charles Li, chief executive of HKEx, the parent company of London Metal Exchange, on Thursday.
“Actual trading of physical products is the foundation of a commodity exchange,” said Li, who was speaking at the HKEx’s Strategic Plan 2016-2018 presentation in Hong Kong. “We aim to develop and internationalise China’s commodity benchmarks, grounded in the physical market.”……………………………………….Full Article: Source

CTX books first spot RGGI trade as prices soar by 10%

Posted on 21 January 2016 by VRS  |  Email |Print

Emissions bourse operator Carbon Trade Exchange (CTX) saw the first activity on its new spot market for RGGI allowances (RGAs), it said on Wednesday, as prices soared by nearly 10% in the first two weeks of the year.
The bourse reported that 1,000 short tons (907.2 metric tonnes) changed hands at a price of $8.13 on Friday, which was in line with the Jan-16 futures on ICE – the main exchange for RGA trading. CTX did not release further details including the identities of the counterparties………………………………………..Full Article: Source

Guangdong carbon exchange sets out ground rules for CCER trade

Posted on 14 January 2016 by VRS  |  Email |Print

The Guangdong carbon exchange has become the first of China’s seven emissions bourses to release specific regulations for offset trading in a bid to safeguard against “irregular” trading activities. The rules allow any company covered by one of China’s seven pilot markets to trade CCERs on the Guangdong exchange, as well as institutional and private investors, as long as they are also members of the exchange.
Under the regulations, the exchange is allowed to halt trading if irregular activities are spotted or illegal trading suspected. On the Guangdong exchange, CCERs will trade four hours a day, from 9.30 to 11.30 in the morning, and from 13.30 to 15.30 in the afternoon………………………………………..Full Article: Source

Indian Regulator Allows Defunct Commodity Exchanges to Exit From Bourse Business

Posted on 12 January 2016 by VRS  |  Email |Print

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

KRX to list second carbon offset type from May

Posted on 29 December 2015 by VRS  |  Email |Print

The Korea Exchange (KRX) will start listing Korean Offset Credits (KOCs) from next May, the bourse operators announced, hoping to boost trading activity in the country’s fledgling carbon market. The exchange made the announcement following pressure from market participants to add the offset type. The KRX currently offers trade in Korean Allowance Units (KAUs) and Korean Carbon Units (KCUs).
When the government issues new offsets, whether from projects under its domestic offset scheme or as replacement for cancelled CERs, they are issued as KOCs, and can only be used for ETS compliance after they are converted to KCUs………………………………………..Full Article: Source

2016 to be a year of turnaround for commodity futures market

Posted on 28 December 2015 by VRS  |  Email |Print

After a stressful 2015, the coming year is likely to be one of turnaround for commodity exchanges, through introduction of new instruments and new classes of traders. The biggest event the comexes witnessed in 2015 was merger of its relatively less powerful regulator, the Forward Markets Commission, into the much stronger equity markets regulator, the Securities and Exchange Board of India (Sebi), effective September 28.
Right after, Sebi chairman U K Sinha said introduction of instruments like options and indices would be prioritised, to enhance depth in commodity derivatives market. Perhaps possible in the near future, he said………………………………………..Full Article: Source

Commodity exchanges eye revival under Sebi after modest 2015

Posted on 21 December 2015 by VRS  |  Email |Print

Commodity derivatives market is likely to end the year 2015 with a modest turnover growth but hopes are high for a rebound in 2016 with expectations of new products and new investors being allowed in the new regulatory regime. The market has now come under the unified regulatory watch of the capital markets regulator Sebi, following the merger of 62-year-old Forward Markets Commission with it.
Having clocked over Rs 100 lakh crore a year in the past, the total turnover at all commodities derivative exchanges in the country slumped to Rs 64.57 lakh crore in 2015. The latest trade data puts the turnover of three national and six regional bourses at Rs 63 lakh crore as on December 10 this year, pegging the total estimated turnover for the entire 2015 at little above the previous year’s mark………………………………………..Full Article: Source

China plans yuan gold pricing, India eyeing exchange – World Gold Council

Posted on 18 December 2015 by VRS  |  Email |Print

China’s Shanghai Gold Exchange plans to introduce a yuan-denominated gold pricing mechanism to facilitate regional market trading and the Indian gold trade is expressing an intent to establish a gold exchange.
The World Gold Council market intelligence head Alistair Hewitt predicts in a media release to Creamer Media’s Mining Weekly Online that the gold market will continue to improve in 2016 on the back of pro-gold Indian government schemes, further internationalisation of the renminbi and the increasing transparency of Chinese gold reserves. He expects yuan gold pricing to take shape in 2016, when he foresees gold continuing to provide a hedge against elevated stock valuations………………………………………..Full Article: Source

Indian regulator Sebi to chalk out exit route for commodity exchanges

Posted on 18 December 2015 by VRS  |  Email |Print

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

The China metal exchange at center of investment scandal

Posted on 15 December 2015 by VRS  |  Email |Print

The plain four-storey Fanya exchange building in this southern Chinese city is teeming with investigators trying to understand how an obscure metal trading business turned into one of China’s most audacious investment schemes.
Tucked behind an upmarket shopping mall, the Fanya Exchange was founded in 2011 with the aim of giving China greater global control over the supply and price of 14 strategic and rare metals. It also offered an investment product promising annual returns as high as 13.68 percent and the flexibility to deposit and withdraw money at will………………………………………..Full Article: Source

Sebi puts in place software testing norms for commodities market

Posted on 14 December 2015 by VRS  |  Email |Print

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

Singapore Exchange looks to bolster faltering gold contract

Posted on 08 December 2015 by VRS  |  Email |Print

The Singapore Exchange (SGX) is looking to boost liquidity of its faltering gold contract by extending trading hours and allowing jewellers and refiners to participate, an official said on Monday. The bourse launched a 25-kg wholesale gold contract in October 2014 with an aim to create a regional benchmark, but the contract has failed to attract volumes, with November recording zero activity.
SGX’s gold contract could face a tough time gathering momentum as it is competing in an increasingly fragmented Asian gold market, where CME Group, Intercontinental Exchange and the Shanghai Gold Exchange have all launched new products over the last 15 months………………………………………..Full Article: Source

Vedanta CEO Says Commodities `Still Searching for the Bottom’

Posted on 02 December 2015 by VRS  |  Email |Print

Vedanta Resources Plc Chief Executive Officer Tom Albanese says metals markets are yet to reach a trough as producers battle to stay afloat with slowing Chinese demand and a looming U.S. interest-rate increase that’s curbing the appeal of commodities.
“The markets are still searching for the bottom,” Albanese, CEO of India’s biggest aluminum and copper producer, said in an interview with Bloomberg Television in London on Tuesday. “Supply is going to take some time to work out. It’s going to take some time before we see what actually happens with the Chinese economy. Is it a soft landing or is it something that’s more disruptive?”……………………………………….Full Article: Source

Govt wants India gold exchange

Posted on 02 December 2015 by VRS  |  Email |Print

India might see its first gold exchange soon. The trading platform would be made available for all types of bullion dealers, jewellers, bullion refineries, individuals, and even temple trusts. This could be seen as a significant move to discover standard gold prices in the country.
The proposal to set up the gold exchange was made by Shaktikanta Das, secretary, department of economic affairs in the finance ministry, on Friday when he interacted with jewellers and stakeholders in the bullion sector during a meeting of jewellers and bullion sector stakeholders. He has asked industry to come out with a concrete proposal for this. In major gold markets like Turkey and China, such gold exchanges have played a major role in developing the bullion sector………………………………………..Full Article: Source

ICE kicks off Asian commodity futures hub

Posted on 02 December 2015 by VRS  |  Email |Print

Intercontinental Exchange’s Asian hub has traded more than 50,000 contracts in the first two weeks of operation as it taps fast-emerging commodities markets. ICE Futures Singapore, based in the city state, had traded a total of 54,862 contracts by the end of trade on Monday, according to data.
Business has been concentrated in mini-Brent futures contracts — a 10th the size of ICE’s widely traded Brent contract. There has also been trading in mini-gas oil, kilo gold and offshore mini-renminbi futures………………………………………..Full Article: Source

Can the London Metal Exchange crack the steel market?

Posted on 01 December 2015 by VRS  |  Email |Print

The London Metal Exchange (LME) has just launched two steel contracts, one for steel scrap and one for steel rebar. It’s the second time the LME has tried to expand its dominant franchise in nonferrous metals markets into the ferrous space.
Its steel billet contract has long been moribund. Volumes so far this year have totaled a meager 28 lots and there has been no trading at all since June. Despite that, the exchange has decided to keep the contract to facilitate potential arbitrage with the two new contracts. Steel could offer a timely boost to the LME, which is seeing volumes across its core base metals contracts decline for the first time in many years………………………………………..Full Article: Source

Sebi may seek relief for commodity exchange warehouses

Posted on 26 November 2015 by VRS  |  Email |Print

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

LME base metals hit multi-year lows

Posted on 19 November 2015 by VRS  |  Email |Print

Base metals have hit multi-year lows as fears persisted over waning demand in top metals user China and investors awaited the minutes of a US Federal Reserve policy meeting, which could reinforce rate rise expectations.
THE US dollar was just off seven-month highs against a basket of currencies, weighing on metals by making dollar-priced commodities costlier for European and other non-US investors. London Metal Exchange zinc hit a fresh six-year trough of $US1,510.50 a tonne, and ended down 2.0 per cent at $US1,517………………………………………Full Article: Source

Commodity exchanges in Africa: Lessons from Ethiopia

Posted on 19 November 2015 by VRS  |  Email |Print

The Ethiopia Commodity Exchange (ECX) began operations in 2008 bringing together buyers and sellers to trade produce such as coffee and sesame seeds, while assuring both parties timely delivery of payments and produce. The ECX was established with support from the Ethiopian government and donor organisations, including USAID.
It has been hailed as a success, helping fix challenges such as unreliable market information, contract defaults, lack of quality standardisation, limited access to markets, and other inefficiencies along the value chain………………………………………Full Article: Source

NYSE-owner ICE to buy commodities trading platform for $650 million

Posted on 17 November 2015 by VRS  |  Email |Print

Intercontinental Exchange Inc, the owner of the New York Stock Exchange, said it would buy commodities trading platform Trayport from BGC Partners Inc and GFI Group Inc for about $650 million in stock. ICE said the deal would help it to provide new services to the European over-the-counter energy markets, including power, natural gas and coal.
The exchange and clearing house operator said it also planned to extend the platform to cater to over-the-counter energy markets in Asia. GFI will receive 2.5 million ICE shares as part of the deal. ICE may substitute cash for part or all of the stock consideration, BGC said in a statement………………………………………..Full Article: Source

Why Nigerian Commodity Exchange should be re-positioned

Posted on 17 November 2015 by VRS  |  Email |Print

The Nigerian Commodity Exchange (NCX) was established to provide a practical solution to a number of challenges that have adversely affected the growth and development of the Nigerian agricultural sector, especially the heavy post-harvest losses associated with poor warehousing and the absence of a ready market for the disposal of farm produce at realistic prices.
The NCX is an end-to-end integrated system of decentralized trading, warehousing, quality certification of commodities, clearing, settlement, delivery and market information. It enables agro-commodity merchants, exporters and industrial end users to have access to reduced transaction costs in terms of cost of logistics and aggregation of commodities………………………………………..Full Article: Source

Ukraine plans to establish its own commodity exchange

Posted on 11 November 2015 by VRS  |  Email |Print

Oleksiy Pavlenko, the Minister of Agrarian Policy and Food of Ukraine, following a meeting with the representatives of the Chicago Mercantile Exchange, announced plans to launch a commodity exchange in Ukraine, which is bound to consolidate Ukraine’s trade position in the world.
The Minister stated that the experts have closely analysed the potential of such commodity exchange (in particular, in terms of agricultural export, such as sunflower and grain) and decided to create a working group on establishment of a commodity exchange………………………………………..Full Article: Source

Tokyo Commodity Exchange Trading Volumes down in October

Posted on 09 November 2015 by VRS  |  Email |Print

The Tokyo Commodity Exchange (TOCOM) reported a 12.8 percent monthly decline in average daily trading volumes, from 109,962 to 95,896 contracts. The total amount of trades carried out on the exchange over the month of October stood at 2.013 million, versus 2.089 million contracts for September.
In a statement, the exchange attributed the decline to the market uncertainty shrouding the economies of China and the European Union, which, it said, kept volatility subdued………………………………………..Full Article: Source

NSE mulls launching more commodity ETFs

Posted on 27 October 2015 by VRS  |  Email |Print

The National Stock Exchange (NSE) hopes to see the launch of more commodity exchange traded fund (ETFs) in the next few months, Chitra Ramakrishna, MD and CEO, NSE, said here at an event to celebrate 20 years since the launch of the NSE. The exchange organised the event to discuss the future of ETFs in India.
An ETF is like a mutual fund which issues units and closely tracks the price of an underlying security (like stock or a commodity), but can be traded on an exchange platform. India mostly has equity, gold and gilt ETFs, but globally, the ETF industry offers products on other commodities and fixed income securities………………………………………..Full Article: Source

HKEx hopes to boost commodities trading with London-HK Connect

Posted on 23 October 2015 by VRS  |  Email |Print

Hong Kong Exchanges and Clearing Ltd. plans to link commodity trading in the city with London through its wholly owned London Metal Exchange (LME), the Hong Kong Economic Journal reported Friday.
Market participants expect “London-Hong Kong Connect” to strengthen the status of the two cities as international financial centers and help institutional investors and mainland Chinese enterprises hedge commodity risks. The plan was announced during President Xi Jinping’s first state visit to Britain………………………………………..Full Article: Source

London Metal Exchange strikes deal to give China more input on prices

Posted on 22 October 2015 by VRS  |  Email |Print

Seven Chinese banks and brokers, including Bank of China and Industrial and Commercial Bank of China, have agreed to support an initiative by the London Metal Exchange to encourage greater participation by China in setting prices for metals, The Financial Times reported.
Among the goals of the deal are price convergence between Chinese and global markets, greater use of LME-approved warehousing systems and aiding the yuan’s internationalization. China currently consumes 40% of global base metals, is the world’s largest metals producer and accounts for 20% of business on the London exchange. The country lacks a true international exchange thanks to capital controls that limit market access for foreign investors………………………………………..Full Article: Source

New Sebi rules for commexes

Posted on 02 October 2015 by VRS  |  Email |Print

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

Chinese Commodity Exchange to Open Trade Platform for Silk Road Countries

Posted on 22 September 2015 by VRS  |  Email |Print

China’s so-called One Belt, One Road government economic framework was announced in 2013 to integrate favorable trade and investment conditions in Eurasia. The project includes two main components, the terrestrial Silk Road Economic Belt and the oceanic Maritime Silk Road.
“After three years of work we have completed the establishment of a mechanism of trade pricing. It will be officially launched within two months,” Yan Dongsheng said at a conference. The SREB includes countries situated on the ancient Silk Road route, connecting Central Asia, West Asia, the Middle East and Europe………………………………………..Full Article: Source

China takes aim at automated trading in commodities futures

Posted on 17 September 2015 by VRS  |  Email |Print

China is extending its control of onshore markets to commodities exchanges, spooked by signs that speculators have shifted from China’s volatile stock markets to commodities futures.
The country’s top commodities exchanges - the Dalian Commodity Exchange (DCE), Shanghai Futures Exchange (SHFE) and Zhengzhou Commodity Exchange (ZCE) - were asked recently by China’s exchange regulator to draft rules designed to “regulate the behaviour of program trading” in futures markets, according to people familiar with the matter………………………………………..Full Article: Source

London Metal Exchange plans to introduce position limits

Posted on 16 September 2015 by VRS  |  Email |Print

The London Metal Exchange (LME) plans to introduce limits on large positions for the first time to avoid market squeezes, initially on its new aluminium premium contract, it said on Tuesday. The use of position limits may be expanded to other contracts if upcoming legislation requires them, the exchange added in a statement.
The LME, the world’s oldest and largest market for industrial metals, has its own system of controlling the impact of large positions, but that would not be viable for its new aluminium premium contract due to be launched on Nov. 23, it said. Under the LME’s existing “Lending Guidance”, the holder of a dominant position must sell some short-term contracts at fixed prices to other participants if the latter need them………………………………………..Full Article: Source

LME in talks on launch of precious metals derivatives - CEO

Posted on 11 September 2015 by VRS  |  Email |Print

The London Metal Exchange (LME) is in talks with the gold industry with a view to launching precious metals derivatives, LME Chief Executive Garry Jones said on Thursday. “There is no listed derivative in precious metals in London. A number of people have said we would like to have this; we really want to be able to clear gold, silver and other precious metals,” he told reporters in Mumbai.
“As an exchange…we want to partner with the market.” Talks would include the London Bullion Market Association (LMBA) and the World Gold Council, he said. “We have the technology to do it. We’re in discussions right now. But if we do it, it would be for launch next year.”……………………………………….Full Article: Source

ICE to launch Singapore platform in Nov with 5 new contracts

Posted on 10 September 2015 by VRS  |  Email |Print

Intercontinental Exchange will launch its Singapore platform on Nov. 17, with five new contracts, the bourse said on Wednesday. The contracts are one-kilogramme gold futures and “mini-Brent” futures that ICE announced earlier as well as mini gasoil and mini onshore and offshore renminbi futures. ICE’s mini-Brent contract will be for 100 barrels each, a tenth of the size of its Brent crude oil benchmark.
Atlanta-based ICE earlier planned to launch its Singapore platform in March. But China’s Zhengzhou Commodity Exchange complained against the use of its settlement prices as references for the cotton and white sugar futures contracts that ICE was initially looking to launch………………………………………..Full Article: Source

ICE to launch Singapore platform in Nov with 5 new contracts

Posted on 10 September 2015 by VRS  |  Email |Print

Intercontinental Exchange will launch its Singapore platform on Nov. 17, with five new contracts, the bourse said on Wednesday. The contracts are one-kilogramme gold futures and “mini-Brent” futures that ICE announced earlier as well as mini gasoil and mini onshore and offshore renminbi futures. ICE’s mini-Brent contract will be for 100 barrels each, a tenth of the size of its Brent crude oil benchmark.
Atlanta-based ICE earlier planned to launch its Singapore platform in March. But China’s Zhengzhou Commodity Exchange complained against the use of its settlement prices as references for the cotton and white sugar futures contracts that ICE was initially looking to launch………………………………………..Full Article: Source

CME challenges LME in its metals trading heartland: Andy Home

Posted on 09 September 2015 by VRS  |  Email |Print

When Hong Kong Exchanges and Clearing (HKEx) bought the venerable old London Metal Exchange (LME) back in 2012, it did so with eyes firmly fixed on China. The vision was to leverage the LME’s near monopoly on base metals pricing in the rest of the world to open up the world’s fastest-growing metals market.
That remains the vision, although HKEx’ ambitions in the commodities space have taken back seat to its Stock-Connect bridge between Hong Kong and mainland Chinese stock markets. What HKEx almost certainly wasn’t expecting back in 2012 was a challenge to the LME’s existing franchise outside of China………………………………………..Full Article: Source

A new era begins for commodity exchanges

Posted on 07 September 2015 by VRS  |  Email |Print

The Indian commodity market is yet to recover from the blow delivered by the imposition of commodities transaction tax (CTT). This tax resulted in plunging volumes as higher trading cost made traders move away from commodities — ushering in an era of ‘dabba’ trading. But all this is set to change as SEBI and FMC, the securities and commodities market regulators, merge in September.
PK Singhal, Joint Managing Director of MCX, India’s largest commodity bourse, outlines the opportunities and challenges that open up with this event, in an interview with BusinessLine. The new watchdog’s sharp scrutiny is set to change the commodity derivatives landscape. But he thinks that as the market opens up and new competitors from the securities market debut with a commodity platform, existing players in the commodity exchange business need to gear up………………………………………..Full Article: Source

Why is nickel trading like it’s 2008? Andy Home

Posted on 04 September 2015 by VRS  |  Email |Print

On the London Metal Exchange (LME) benchmark nickel for three-month delivery is currently trading around $10,000 per tonne. Which, as with all the other industrial metals traded on the LME, is the lowest it has been since the Global Financial Crisis in 2008-2009.
But whereas the likes of copper and aluminium are still comfortably above the troughs recorded during the worst of the manufacturing meltdown that followed the financial meltdown, nickel is actually there. Nickel hit a low of $9,100 during its “flash crash” of Aug. 12, within spitting distance of the low of $8,850 recorded in October 2009, the month after the fateful “Lehman Moment”………………………………………..Full Article: Source

National Commodity and Derivatives Exchange awaits FMC merger with Sebi to launch weather ETFs

Posted on 03 September 2015 by VRS  |  Email |Print

Aiming to help hedge risks against adverse weather conditions, National Commodity and Derivatives Exchange (NCDEX) will shortly be launching a set of exchange- traded weather insurance products.
As NCDEX is currently being regulated by Forward Markets Commission (FMC) whose norms don’t allow any such product, it is waiting for the merger of the commodities regulator with Securities and Exchange Board of India (Sebi) to be completed by September end, before it formally unveils the product………………………………………..Full Article: Source

Be Cautious With Commodity Exchange-Traded Products

Posted on 27 August 2015 by VRS  |  Email |Print

Academic research suggests that commodities can play a role in a balanced asset allocation. A track record of providing uncorrelated returns has won the commodities Morningstar Category a place in many portfolios as an attractive diversifier in a mix of stocks, bonds, and cash.
Exchange-traded funds have made a category that was once the realm of large institutional investors accessible to the masses. But, as with everything, investors should be aware of what they are actually buying when they go shopping for a commodity-focused exchange-traded product. A look behind these funds’ labels will show that they are often not what they seem………………………………………..Full Article: Source

Angry investors capture head of China metals exchange

Posted on 24 August 2015 by VRS  |  Email |Print

The head of a Chinese exchange that trades minor metals was captured by angry investors in a dawn raid and turned over to Shanghai police, as the investors attempted to force the authorities to investigate why their funds have been frozen.
Investors have been protesting for weeks after the Fanya Metals Exchange in July ceased making payments on financial investment products. The exchange, based in the southwestern city of Kunming, bought and stockpiled minor metals such as indium and bismuth, while also offering high interest, highly-liquid investment products from its offices in Shanghai and its financing branch in Kunming………………………………………..Full Article: Source

Sebi to discuss norms for commodities derivatives market

Posted on 24 August 2015 by VRS  |  Email |Print

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

Routing commodity trades through brokers may push up costs for hedgers

Posted on 21 August 2015 by VRS  |  Email |Print

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

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

Posted on 18 August 2015 by VRS  |  Email |Print

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

Commodity exchange market to begin soon

Posted on 16 July 2015 by VRS  |  Email |Print

The Tanzania Mercantile Exchange (TCX) is expecting to start trading by the end of this year as regulations and dealers will be in place at end-September. The training of the first commodities dealers, about 60, is ongoing and will end this July and licensing them will follow thereafter. While, TCX regulations are expected to be sent to the ministry responsible for endorsement in this quarter.
The Capital Market and Securities Authority (CMSA), Public Relations Manager, Mr Charles Shirima, said that the exchange trading expects to with coffee, cashew nuts, sesames and probably maize—current traded under warehouse receipt system. “It seems all are in place………………………………………..Full Article: Source

World’s first diamond exchange will go live in Singapore in September

Posted on 02 July 2015 by VRS  |  Email |Print

The Singapore Diamond Investment Exchange Pte Ltd (SdiX) on Wednesday announced it will launch the world’s first commodities exchange in physically settled diamonds in Singapore. The exchange is targeted to go live in September 2015.
The SdiX said in a statement that the SDiX platform will utilise proven exchange technology to create a new marketplace for the global diamond trade. The platform is designed to deliver price transparency and liquidity to the diamond market through a real-time price discovery mechanism, allowing diamonds to be traded as a commodity, thus enabling the creation of a new asset class, it added………………………………………..Full Article: Source

Upside Momentum for Gold Looks Strong in Second Half of the Year

Posted on 30 June 2015 by VRS  |  Email |Print

The Shanghai Gold Exchange is expected to receive approval from its central bank for a yuan-denominated gold fix soon, according to Reuters. If the yuan fix takes off, China could draw buyers in the mainland and foreign suppliers to pay the local price, making the London fix less relevant in the world’s biggest bullion market.
Additionally, the Shanghai Gold Exchange is in discussions with the CME Group about listing each other’s contracts on their respective exchanges, according to the exchange’s vice-president. Trading volume on the Shanghai Gold Exchange for the benchmark contract soared this week to the highest on record, according to data on Bloomberg, going back to 2002. The Shanghai Composite Index dropped more than 10 percent in the last two trading days of this week and is down nearly 20 percent from its highs………………………………………..Full Article: Source

India: Commodity Exchanges’ Turnover Up 20% Till June 15 of This Fiscal

Posted on 30 June 2015 by VRS  |  Email |Print

Turnover of the commodity exchanges rose by 20 per cent to Rs 13.97 lakh crore between April 1 and June 15 period of this fiscal on increased trade in farm and energy items. The turnover stood at Rs 11.66 lakh crore in the year-ago period, commodity market regulator Forward Markets Commission (FMC) said in a statement.
As per the FMC data, the turnover from energy rose by 57 per cent to Rs 4.02 lakh crore till June 15 of this fiscal, as against Rs 2.55 lakh crore in the year-ago period. Agri-commodities’ turnover increased by 24 per cent to Rs 2.95 lakh crore from Rs 2.38 lakh crore, while turnover of metals rose by 16 per cent to Rs 2.94 lakh crore from Rs 2.54 lakh crore during the period under review………………………………………..Full Article: Source

China to launch yuan-denominated gold fix this year

Posted on 26 June 2015 by VRS  |  Email |Print

The Shanghai Gold Exchange will launch a yuan-denominated gold fix by the end of the year, a bourse official said on Thursday, in a move aimed at giving China more influence over the pricing of the precious metal.
“We will be introducing a renminbi-denominated fix at the right moment, we are hoping to introduce by the end of the year,” Shen Gang, vice president of the Shanghai Gold Exchange said at the LBMA Bullion Market Forum in Shanghai………………………………………..Full Article: Source

Shanghai Gold Exchange Says in Talks With CME Group on Contracts

Posted on 26 June 2015 by VRS  |  Email |Print

The Shanghai Gold Exchange is in discussions with the CME Group Inc. about listing each other’s contracts on their respective exchanges, according to Shen Gang, vice president of the SGE. The Shanghai gold bourse will list its contracts and prices on the CME in the first phase of the cooperation, Shen said Thursday at a conference in Shanghai. The CME’s contract will then be available to members of the Chinese exchange during a second phase, she said.
An agreement will be signed in August and trading may begin in the first quarter of next year, according to Shen. Shen’s comments on the CME talks come as China is pushing to add liquidity to the country’s gold trade and broaden its influence on global commodity and currency markets. The SGE is preparing to start its own yuan-denominated gold fix while China’s largest banks are seeking to join the London price- setting process………………………………………..Full Article: Source

LBMA to start reporting OTC gold trade soon

Posted on 25 June 2015 by VRS  |  Email |Print

The London Bullion Market Association (LBMA) could soon take steps to report trades of the over-the-counter gold market, but the prospect of higher costs makes an exchange-traded model unattractive to participants for now, its chief executive said.
The LBMA had commissioned consultancy EY, formerly known as Ernst & Young, to review the London gold market and recommend further developments including the possibility of creating an exchange for gold trading in the city………………………………………..Full Article: Source

Ghana Commodities Exchange launched

Posted on 25 June 2015 by VRS  |  Email |Print

President John Mahama has announced that government has approved a consolidated security industry scheme, to ensure the legal framework that would allow Security and Exchanges Commission to regulate commodity exchanges in the country.
He said the Ministry of Trade and Industry has disbursed funding ahead of all private sector investments to begin designing the project and to ensure safety and security at the warehouses. “The framework will propel the processes of implementation of Ghana Commodities Exchange (GCX) to give an impetus to the…economy.” President Mahama announced this when he launched the Ghana Commodities Exchange project on the theme: “Trade with trust,” in Accra………………………………………..Full Article: Source

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