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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

Guangdong Plans to Include New Industries in Carbon Exchange

Posted on 25 February 2016 by VRS  |  Email |Print

China’s southern province of Guangdong is planning to expand the number of industries to be included in its carbon-trading exchange amid steps to integrate the regional trading program into planned national emissions exchange.
China Emissions Exchange, which overseas carbon trading in every part of the province except the city of Shenzhen, has finished looking at the greenhouse gas emissions of six industries including ceramics, civil aviation and papermaking ahead of possibly including the industries in the program, President Ye Jun said………………………………………..Full Article: Source

Pros of a spot gold exchange in India

Posted on 22 February 2016 by VRS  |  Email |Print

An Exchange in India would help much to create a vibrant gold ecosystem matching India’s large share of global gold consumption. Although India is the world’s second largest gold consumer with an annual demand of nearly 1,000 tonnes, it lacks many key elements of an efficient gold ecosystem.
The gold market here is plagued by fragmentation, with prices varying significantly across channels and locations. The quality of gold also varies widely. Jewellery rather than gold bars, gold coins, or gold-linked financial products, still dominates retail demand. Large jewellers and traders mostly import refined gold from international markets, such as Dubai, causing loss of economic value and jobs in India………………………………………..Full Article: Source

Egypt takes steps to launch commodity exchange in 2016

Posted on 10 February 2016 by VRS  |  Email |Print

The government has been taking concrete steps towards the establishment of a commodities exchange this year, according to Minister of Supply Khaled Hanafy. Hanafy said on Tuesday, during the Capital Markets & Financing Growth conference, that the steps to establish the commodity exchange have been taken in cooperation with Egyptian Financial Supervisory Authority (EFSA) and Egyptian Exchange (EGX), as well as global consultancies, to draw on their experience.
He noted that the commodity exchange is expected to accelerate development in Egypt and will be launched during 2016………………………………………..Full Article: Source

EC wants to crack down on virtual currency exchanges

Posted on 04 February 2016 by VRS  |  Email |Print

The European Commission (EC) has announced its desire to crack down on the anonymous crypto-currencies. In a recent “action plan for strengthening the fight against terrorist financing”, the EC state its desire to staunch the flow of illicit funds into the hands of terrorists.
This follows on from the European Agenda on Security which highlighted the need to attack terrorist financing. The Action Plan among other things wants to pursue the disruption of “sources of revenue of terrorist organisations, by targeting their capacity to raise funds in the first place”………………………………………..Full Article: Source

Guangdong becomes China’s first carbon market to green-light OTC forward trading

Posted on 04 February 2016 by VRS  |  Email |Print

The Guangdong emissions exchange on Wednesday became the first in China to release rules for forward trading in carbon, though all deals must be negotiated over the counter (OTC) as screen-based forward trading is banned in the country’s regional pilot schemes.
The exchange published the rules on its website in a bid to formalise a practice that, according to sources, some market participants have been doing informally. Under the rules, parties can negotiate forward trades of Guangdong Emissions Allowances (GDAs) and Chinese Certified Emissions Reductions (CCERs)………………………………………..Full Article: Source

Euronext Expands Commodity Derivatives

Posted on 29 January 2016 by VRS  |  Email |Print

Euronext is launching sugar futures this autumn, before quotas are abolished in the European market, as the exchange continues to grow its commodity derivatives franchise. The pan-European exchange operator is launching sugar futures, subject to regulatory approvals, ahead of the European Union abolishing sugar production quotas on 30 September 2017.
The European Union is the third largest sugar producer and the second largest consumer in the world according to Euronext. Sugar futures can already be traded on rival exchange ICE, the former owner of Euronext………………………………………..Full Article: Source

Shanghai carbon exchange aids first custody contract to build trade

Posted on 29 January 2016 by VRS  |  Email |Print

The Shanghai Environment and Energy Exchange announced its first “custody contract” on Thursday, allowing a brokerage to borrow permits from a local company and trade them, in a bid to inject liquidity in a depressed market.
China’s government will launch a nationwide carbon trading market next year and is working on plans to harmonise the seven existing pilot markets, but it remains unclear how many of the existing local exchanges will survive the transition………………………………………..Full Article: Source

Ghana: Lack of cooperation stalls commodity exchange agenda

Posted on 28 January 2016 by VRS  |  Email |Print

The country is likely to miss its June 2016 deadline of starting the commodity exchange market due to the lack of support from some stakeholders, the Project Coordinator, Mr Robert Dowuono Owoo, has said. He said some of the potential actors within the commodity exchange market had failed to give their full backing to the project because they perceived it as a threat to their businesses.
“Some of them have been in this business for a long time and they see the coming into being of the exchange as a competition to their businesses. They think the exchange is going to engage in the buying and selling of agricultural products,” he stated………………………………………..Full Article: Source

LBMA plans central hub for London gold market

Posted on 27 January 2016 by VRS  |  Email |Print

The London Bullion Market Association is planning a central hub for posting trades in the $5 trillion a year London gold market, LBMA consultant David Gornall said in an editorial in the association’s trade magazine the Alchemist on Tuesday.
It has also agreed on the need for a voluntary reporting system for gold, silver, platinum and palladium spot transactions, as well as non-cash settled forwards, and favours the creation of a data warehouse to gather and store information on transactions, Gornall, a former chairman of the LBMA, said………………………………………..Full Article: Source

HKEx commodity platform in Shenzhen would be a breakthrough, if challenges can be surmounted

Posted on 26 January 2016 by VRS  |  Email |Print

First it was the accounting firms and financial companies, and now even Hong Kong Exchanges and Clearing is going north, seeking to open a platform on the mainland to expand its commodities business. But the local bourse may find the challenges bigger than expected.
A trend that first emerged in the 1990s has seen the Big Four accounting firms, banks and insurance companies set up joint ventures or subsidiaries in mainland markets to capture the many business opportunities on offer there. The odd one out was the Stock Exchange of Hong Kong, now part of HKEx, which lured mainland companies to issue H shares in Hong Kong, starting in 1993, but never had any trading platform on the mainland………………………………………..Full Article: Source

Indian regulator Sebi sets up panel for commodity market

Posted on 26 January 2016 by VRS  |  Email |Print

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

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

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