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India: Combined turnover of commodity exchanges dips by 25pct in H1

Posted on 11 October 2013 by VRS  |  Email |Print

Combined turnover of commodity exchanges fell by 25 per cent to Rs 65.68 lakh crore in the first six months of 2013-14 due to a sharp decline in trading volumes in most commodities, according to the Forward Markets Commission (FMC).
These exchanges had done business of Rs 87.62 lakh crore in the April-September period of the 2012-13 fiscal, FMC said in a statement. Maximum fall in business was seen in agricultural items, followed by bullion, metals and energy commodities, commodity markets regulator FMC noted………………………………………..Full Article: Source

LME-HKEx deal disappoints as commodities fail to take off

Posted on 08 October 2013 by VRS  |  Email |Print

Our government may need to review whether the green light given to the local bourse to spend so much on the London Metal Exchange was the right decision. We have found no evidence to show the deal will encourage commodities trading here.
In fact, Hong Kong brokers and investors have paid scant attention to the continuing annual LME Week in London, which shows the mega deal last December has failed to promote commodities trading here. The Hong Kong government - Hong Kong Exchanges and Clearing’s largest shareholder - threw its weight behind the LME deal as it believed it would help promote the city as a commodities trading centre………………………………………..Full Article: Source

Ghana: Eleni receives green light to set up Ghana Commodity Exchange

Posted on 08 October 2013 by VRS  |  Email |Print

Eleni LLC, a newly-formed company based in Nairobi, Kenya, with equity investments by Morgan Stanley, International Finance Corporation (IFC), the private sector arm of the World Bank, and 8 Miles Fund, a private firm in London, has received the green light from the Securities and Exchange Commission (SEC) to set up the Ghana Commodity Exchange (GCX) within a 12-month timeframe.
The Co-founder and Chief Executive Officer (CEO) of Eleni LLC, Dr. Eleni Gabre-Madhin, disclosed this to the Business Chronicle in Accra over the weekend. Dr. Gabre-Madhin, who was in Accra last week at the invitation of the Government of Ghana, described her trip to Ghana as “very successful.”……………………………………….Full Article: Source

NSEL, FTIL entities barred from commodities auctions

Posted on 04 October 2013 by VRS  |  Email |Print

The Forward Markets Commission (FMC) on Thursday banned group entities and associate concerns of the National Spot Exchange Ltd (NSEL) and its parent Financial Technologies (India) Ltd (FTIL) from participating in auctions of commodities and assets.
Board members and employees of both the companies have also been barred from the auctions. The letter addressed to NSEL chief executive officer and managing director, Saji Cherian, referred to the recent auction of castor seeds and sugar conducted by the spot exchange………………………………………..Full Article: Source

Chicago Mercantile Exchange floats Wall Street cloud

Posted on 01 October 2013 by VRS  |  Email |Print

Cloud computing promises the easy migration from one supplier to the next, but we all know that isn’t the case because there isn’t any market punters can access to buy and sell their resources.
But on Monday that changed when the Chicago Mercantile Exchange (CME) announced it had signed a non-binding Letter of Intent with cloud broker 6fusion to try and build a market for buying and selling cloud resources………………………………………..Full Article: Source

RI commodity exchange fails to sell refined tin

Posted on 24 September 2013 by VRS  |  Email |Print

The Indonesia Commodity and Derivatives Exchange failed to get any buyers for physical tin in Jakarta on Monday, according to a statement on its website.
Indonesia, the largest shipper, requires ingots of a minimum 99.9 percent purity to be traded on a domestic exchange before export with effect from Aug. 30. PT Timah, the country’s biggest producer, Toyota Tsusho Corp. and Noble Resources Ltd. are among companies that trade tin on the ICDX…………………………………..Full Article: Source

India to strengthen corporate governance of commodity exchanges

Posted on 24 September 2013 by VRS  |  Email |Print

India’s commodity regulator has moved to strengthen corporate governance of commodity exchanges by issuing guidelines to restrict board representation by promoter members. Under the guidelines, a promoter of an exchange cannot have board representation higher than their total shareholding, capped at 26 percent at the end of the fifth year of operation, the Forwards Market Commission said.
These revised guidelines follow the National Spot Exchange Ltd (NSEL), MCX-SX’s affiliated commodity exchange, abruptly suspending trading in August. NSEL has since struggled to square off outstanding contracts worth over 55 billion rupees ($868.81 million)…………………………………..Full Article: Source

India: Govt may consider Sebi-like regulations for commodities market

Posted on 20 September 2013 by VRS  |  Email |Print

As a multi-agency probe continues into the Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), the government may consider streamlining the norms for commodities and capital markets, regulated by FMC and Sebi, respectively, to plug potential regulatory gaps.
The idea is to make the regulations governing commodity derivatives markets much more stringent and bring them at par with the norms applicable for Sebi-regulated capital markets, sources said………………………………………Full Article: Source

CME applies to create commodities swap execution facility

Posted on 19 September 2013 by VRS  |  Email |Print

CME Group Inc., the owner of the world’s largest futures market, applied to create a new kind of venue known as a swap execution facility that will initially focus on trading commodities derivatives.
The Chicago-based exchange operator said today that it’s seeking U.S. Commodity Futures Trading Commission permission to form the market. Other companies that have asked for or received approval to create one include IntercontinentalExchange Inc., ICAP Plc (IAP), Tradeweb Markets LLC, GFI Group Inc. and Bloomberg News parent Bloomberg LP, according to the CFTC website………………………………………..Full Article: Source

National Spot Exchange names chief executive

Posted on 18 September 2013 by VRS  |  Email |Print

India’s National Spot Exchange Tuesday named a new chief executive, as it struggles to settle commodity contracts that were outstanding when it halted trading amid a regulatory probe into alleged rule violations.
The board has appointed Saji Cherian, the new CEO, also as the exchange’s managing director, it said in a news release. Mr. Cherian was previously head of listing at MCX Stock Exchange Ltd., a stock exchange co-founded by Financial Technologies (India) Ltd., the owner of the National Spot Exchange………………………………………..Full Article: Source

FMC widens risk management group to include Sebi, BSE members

Posted on 17 September 2013 by VRS  |  Email |Print

The Forward Markets Commission (FMC) today widened the Risk Management Group to include a member each from Sebi, BSE and IFFCO, among others, as it tackles the growing challenges of risks associated with commodity futures trading after the NSEL crisis.
The Risk Management Group (RMG) was set up in February 2005 to assist the FMC in formulating risk management policies and guidelines for the commodities derivatives market. The group was last reconstituted in March 2007………………………………………..Full Article: Source

India: Turnover of commexes drops 17pct in April-August this year

Posted on 16 September 2013 by VRS  |  Email |Print

The total turnover of commodity bourses fell over 17 per cent to Rs 58,98,170 crore till August 2013, mainly due to sluggish trade volumes in almost all items, according to sector regulator FMC.
The business at the 21 commodity exchanges stood at Rs 71,39,917 crore in the same period last year. Much of the fall was in farm commodities, followed by bullion, metals and energy items, said the Forward Markets Commission (FMC) said while releasing its latest data………………………………………..Full Article: Source

ICEX weighs UCX proposal for buyout

Posted on 11 September 2013 by VRS  |  Email |Print

The decade-old commodity futures market might witness consolidation for the first time with Indian Commodity Exchange (ICEX), owned jointly by Reliance Capital, MMTC and Indiabulls, mulling over a proposal to be acquired by rival bourse Universal Commodity Exchange (UCX).
UCX has been promoted by Ketan Sheth-owned listed exchange solutions provider Commex Technology. “The proposal was discussed and minuted at an ICEX board meeting held a month ago…..A decision can be taken once the valuation and due diligence is completed,” said two people aware of the development………………………………………..Full Article: Source

Exchanges responsible for delivery: FMC

Posted on 03 September 2013 by VRS  |  Email |Print

FMC has also directed the exchanges to ensure that all the existing FMC accredited warehouses get registered by 31 Dec. Commodities markets regulator Forward Markets Commission (FMC) on Monday said commodity future exchanges are responsible for ensuring the settlement of outstanding forward contracts by way of delivery.
Forward Contract Regulation Act, 1952, requires all forward contracts to be delivery-based. Without mentioning any exchange, FMC said “it has been observed that some of the exchanges have issued circulars to their trading members and other market participants in which conscious efforts have been made to evade their prime responsibility of ensuring quality and quantity of commodities as per the prescribed contract specification, and to pass on the entire onus to the warehouse service providers, which is not correct”………………………………………..Full Article: Source

London Metal Exchange gets new CEO

Posted on 28 August 2013 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd. said Tuesday it had appointed Garry Jones as the new chief executive of the London Metal Exchange, the venerable industrial metals bourse it acquired last year, which has been embroiled in a series of price-manipulation lawsuits.
Mr. Jones, a derivatives-market veteran who most recently led the rival NYSE Liffe commodities exchange, is expected to help lead the LME’s push into more lucrative commodities trading even as the 136-year-old institution battles accusations that it turned a blind eye to metal hoarding at exchange-registered warehouses aimed at pushing prices higher………………………………………..Full Article: Source

FMC tightens rules for commodity bourse CEOs

Posted on 28 August 2013 by VRS  |  Email |Print

Tightening its noose around commodity exchanges in the aftermath of NSEL fisaco, the Forward Markets Commission (FMC) today issued a circular making CEOs more accountable to their board and the sector regulator.
FMC asked Managing Directors and/or CEOs of the commodity exchanges to furnish by September 2 if they were keeping their boards informed about the material developments and asked if expenditure incurred by them was approved by their boards………………………………………..Full Article: Source

NSE sells over 2 per cent stake in Multi Commodity Exchange

Posted on 27 August 2013 by VRS  |  Email |Print

The National Stock Exchange (NSE) has sold an over 2 per cent stake in Multi Commodity Exchange (MCX) in small tranches over past few weeks, even as speculations are rife about a potential buyout of the country’s largest commodity bourse by some rival entity or private investors.
As per MCX’s latest shareholding disclosure, top stock exchange NSE held 12.5 lakh shares, or a 2.45 per cent stake, in the commodity exchange as on June 30, 2012. Out of this, the NSE is believed to have sold more than 12 lakh shares and is left with only a few thousand shares, as it did not see any further value proposition in this long-held investment, sources said………………………………………..Full Article: Source

Five things to know about CME foreign exchange

Posted on 22 August 2013 by VRS  |  Email |Print

A number of factors have united in the last 40 years to promote free trade across geographic and political boundaries, from the elimination of restrictive tariffs, capital controls and subsidization of local businesses to technological advances and advanced telecommunication systems.
As companies continue to conduct business outside of their own country they are becoming more exposed to the risk that foreign exchange rates are unpredictable and can fluctuate in adverse directions. As businesses become more exposed to changing currency rates the use of a central marketplace, like CME Group and its suite of FX futures and options, can be more helpful to managing risk. (Press Release)

FMC tightens commodity exchange screws

Posted on 21 August 2013 by VRS  |  Email |Print

The crisis at the National Spot Exchange have brought things to a head, and the Forward Market Commission, which regulates commodity exchanges, is taking a hard line when it comes to compliance with its directives.
The commodities exchange regulator has been working on plugging regulatory gaps in these exchanges for a few months now. The hue-and-cry created by the NSEL crisis has only strengthened the FMC’s resolve to crack the whip to ensure that all 6 commodity exchanges in the country conform to its ‘fit & proper’ management guidelines………………………………………..Full Article: Source

India gripped by commodities exchange woes

Posted on 20 August 2013 by VRS  |  Email |Print

India’s government would seem to have enough to worry about with its diving currency and growing concerns about economic stability.
But the deepening anxieties are being compounded by a more local worry: the shutdown of a commodities exchange that has left prominent domestic brokerages facing potentially heavy losses and has led to broker demands for a government rescue package for the bourse………………………………………..Full Article: Source

Japan exchange group set for major derivatives push

Posted on 19 August 2013 by VRS  |  Email |Print

The Japan Exchange Group – created by the $1.7 billion merger of the Tokyo Stock Exchange and the Osaka Securities Exchange in January – is planning to boost its derivatives volumes by almost 50% within two years and revive trading in the local commodities market.
It has laid out plans to capitalise on its increased size and scale and, according to its post-merger business plan, become “a top-class Asian derivatives market”………………………………………..Full Article: Source

Africa’s agriculture commodity exchanges take root

Posted on 16 August 2013 by VRS  |  Email |Print

A handful of African countries are setting up commodity exchanges in an effort to develop agricultural markets and improve food security. Are they the key to Africa’s agricultural growth? When Ethiopia set up its now famous commodity exchange in 2008, few foresaw the ripple effect it would generate – least of all its founders.
But in five years, the Ethiopian Commodity Exchange (ECX) has convinced stakeholders that bourses can improve food security in Africa, and has catalysed global dialogue about the development of agricultural marketplaces across the continent. Other countries are now looking to set up their own exchanges………………………………………..Full Article: Source

Commodity market regulator to step in if NSEL defaults

Posted on 13 August 2013 by VRS  |  Email |Print

The commodity market regulator is preparing a course of action if the troubled bourse National Spot Exchange fails to pay up by the middle of this week as promised by it. In a report finalised over the weekend, the Forward Markets Commission (FMC) has recommended involving other government agencies to track the money if there is a default.
“Among the borrowers, there are companies with will low paid-up capital but have borrowed hundreds of crores. If there are defaults, there should be investigation on how the money lent by thousands of investors have been deployed,” a government official told ET………………………………………..Full Article: Source

Tanzania: Exporters caution over envisaged commodity exchange

Posted on 07 August 2013 by VRS  |  Email |Print

The envisaged Commodity Exchange might not operate smoothly due to excessive market monopoly in the marketing of agricultural produce in some parts of the country, Tanzania Exporter Association (TANEXA) has warned.
Four cash crops–cashew nuts, coffee, cotton and rice are lined up as the first products to trade on the exchange that is expected to boost the country’s exports and contribute to the national economic growth. TANEXA Executive Director Mtemi Laurence said in an interview with the ‘Daily News’ in Dar es Salaam that there were unsettled problems with regards to marketing of traditional cash crops like cashew nuts and cotton………………………………………..Full Article: Source

ICE chief shrugs off banks’ exit from commodities

Posted on 07 August 2013 by VRS  |  Email |Print

The top executive of IntercontinentalExchange Inc. (ICE) said Tuesday that commodity futures trading activity would remain strong despite some Wall Street banks’ planned exit from commodities businesses.
“These physical commodities infrastructure resources are valuable businesses that will continue to require risk management regardless of who owns them,” Jeffrey Sprecher, chief executive of ICE, said Tuesday on a conference call with analysts to discuss second-quarter earnings………………………………………..Full Article: Source

India spot commodity exchange seen as cause of bourse crash

Posted on 06 August 2013 by VRS  |  Email |Print

Indian brokers said that a lack of oversight allowed the nation’s biggest spot commodity exchange to stretch settlement dates, prompting a government clampdown that sparked a two-day, 73 per cent crash in its parent’s shares.
The National Spot Exchange Ltd (NSEL) suspended some contracts after the government on July 14 asked the bourse not to start new obligations until further notice. The NSEL broke rules by allowing settlement longer than 11 days and permitting sale of goods traders didn’t keep in its warehouses, according to the Forward Markets Commission (FMC), which regulates futures trading………………………………………..Full Article: Source

LME and Goldman face suit over metals ‘monopolism’

Posted on 05 August 2013 by VRS  |  Email |Print

The London Metal Exchange and Goldman Sachs have been accused of “monopolistic behaviour” in a US class-action lawsuit over controversial metals storage.
The lawsuit alleges “anti-competitive and monopolistic behaviour in the warehousing market in connection with aluminium prices,” LME owner Hong Kong Exchanges and Clearing (HKEx) said. Superior Extrusion filed the lawsuit last Thursday………………………………………..Full Article: Source

India: Commexes’ turnover dips by 42 pct due to CTT in July 1-15

Posted on 05 August 2013 by VRS  |  Email |Print

The turnover of 22 commodity bourses fell by 42 per cent to Rs 4,07,670 crore in the first fortnight of July mainly due to sharp fall in business at MCX following the imposition of commodity transaction tax (CTT) on the futures trading of non-farm items and some processed food.
The turnover of these commodity bourses stood at Rs 7,08,342 crore during the June 16-30 period, the immediate fortnight before the introduction of CTT. CTT of 0.01 per cent has been made effective from July 1 on the futures trading of non-agri commodities and processed foods. The government has exempted 23 agricultural commodities from the new tax………………………………………..Full Article: Source

India: National Spot Exchange suspends trading amid fears of default

Posted on 01 August 2013 by VRS  |  Email |Print

National Spot Exchange (NSEL) has suspended trading of all contracts, other than e-Series and deferred the settlement, sparking fears of cash crunch and default of payment in the Financial Technology-promoted commodity bourse. The exchange has blamed the government for the structural changes it has instructed a few weeks back for creating market disequilibrium.
While NSEL officials were unavailable for comments, brokers said that the exchange has stopped payouts on Wednesday due to financial crisis, which could impact operations of many of the brokers who are into commodity trading on Thursday………………………………………..Full Article: Source

NSE tops global charts for currency derivative contracts

Posted on 29 July 2013 by VRS  |  Email |Print

NSE has emerged as the largest bourse globally in the number of currency derivative contracts traded on its platform in first half of 2013 — leading the second-ranked Moscow Exchange by over 125 per cent.
As per the latest data complied by the World Federation of Exchanges (WFE), 59.71 crore currency derivative contracts were traded on NSE between January and June, a rise of 52 per cent from the year-ago period………………………………………..Full Article: Source

NSEL modifies commodities contracts as per law

Posted on 24 July 2013 by VRS  |  Email |Print

The National Spot Exchange Ltd (NSEL) said it will not offer contracts where settlement and delivery of commodities is done beyond 11 days, a move that comes after the Centre ordered the bourse not to launch new contracts following violation of certain rules.
Last week, the Consumer Affairs Ministry had asked the exchange not to launch any new contracts till further instructions and also sought undertaking from the NSEL in this regard………………………………………..Full Article: Source

India: FDI in commodity exchanges made automatic

Posted on 18 July 2013 by VRS  |  Email |Print

The government retained the 49 percent foreign equity cap in commodity exchanges but made the route automatic to help bring more investment and make the existing exchanges more competitive. Commerce Minister Anand Sharma announced the decision after Prime Minister Manmohan Singh reviewed foreign direct investment in several sectors.
Earlier, FDI in commodity exchanges needed an approval from the the Foreign Investment Promotion Board (FIPB). “No FIPB approval would be required now,” said an official………………………………………..Full Article: Source

India: Govt considers regulation for spot exchanges

Posted on 17 July 2013 by VRS  |  Email |Print

The government is considering a new regulation for spot commodity exchanges. There are three such exchanges but no single regulator. The commodity futures market regulator, the Forward Markets Commission (FMC), had in the past proposed a law in this regard. The Union ministry of consumer affairs (MCA) is considering this, say sources.
Recently, the MCA wrote to the National Spot Exchange (NSEL), promoted by Financial Technologies, forbidding it from launch of any new contract with a one-day carry forward facility, for which they had been earlier granted exemption. Without the exemption, spot exchanges cannot undertake forward trade. NSEL has said it will comply………………………………………..Full Article: Source

Brokers urge systems upgrade for HKEx

Posted on 15 July 2013 by VRS  |  Email |Print

Stock exchange needs better trading systems and cut to stamp duty to compete with growing international rivals, say brokers and investors. Hong Kong Exchanges and Clearing needs to upgrade its systems and introduce commodities trading in order to compete with rival exchanges in Shanghai and elsewhere in the world, local brokers and international investors said.
They said the city’s stock exchange faced a growing challenge to its status as a key regional player because its former flagship products, so-called H shares, had lost their lustre after their poor performance………………………………………..Full Article: Source

India: Commexes’ turnover slips to Rs 41.45 lakh cr in April-June quarter

Posted on 15 July 2013 by VRS  |  Email |Print

Turnover of commodity exchanges fell marginally to Rs 41.45 lakh crore in the April-June quarter this fiscal due to drop in trading volumes of bullion and farm items, according to Forward Markets Commission (FMC).
The exchanges had made a business of Rs 41.71 lakh crore in the same period last year. Except for energy futures, trading volumes in farm items, gold, silver and industrial metals remained lower in the said period, commodity market regulator FMC said in a statement………………………………………..Full Article: Source

Singapore launches world’s first physical precious metals exchange

Posted on 04 July 2013 by VRS  |  Email |Print

Singapore Precious Metals Exchange (SGPMX), the world’s first physical precious metals exchange with peer-to-peer bullion trading capabilities integrated into the trading platform, launched in Singapore today, amid Singapore’s drive to encourage gold trading in the country. As part of the launch, SGPMX also announces the entry into an MOU with Certis CISCO which will act as the custodian for bullion storage.
Certis CISCO has been providing secure and trusted storage of precious metals for renowned banks and international couriers since 1986. Storage with Certis CISCO will enable SGPMX to provide the platform for private individuals, traders and institutions to buy, sell, store and exchange precious metals including gold and silver bullion, without incurring high spread margins. (Press Release)

Moscow exchange launches first precious metals trading

Posted on 28 June 2013 by VRS  |  Email |Print

The stock exchange is going to start trading gold and silver by the end of this year, and platinum and palladium in 2014. Trading physical metals is expected to boost liquidity in the market and attract more participants.
Russia has so far only been trading futures on gold and silver, not dealing with real metals. Gold has been occasionally sold on the over-the-counter market and the only benchmark for price was the Central bank’s quotations, Gazeta.ru reports. Now gold will get the market price in rubles………………………………………..Full Article: Source

London Stock Exchange mulls expansion in commodities futures

Posted on 27 June 2013 by VRS  |  Email |Print

The London Stock Exchange may look to develop more commodity futures contracts after launching a durum wheat contract earlier this year, an exchange spokesman said on Wednesday.
“Expanding our range of commodity derivatives is something we’re considering, but we haven’t made announcements on any products beyond our durum wheat futures,” a spokesman said. The exchange launched a contract for durum wheat in January and volumes so far have been light………………………………………..Full Article: Source

LME and HKEx plan to grab China’s metal market

Posted on 27 June 2013 by VRS  |  Email |Print

It’s no secret that gaining access to China was the primary reason Hong Kong Exchanges & Clearing (HKEx) bought the London Metal Exchange, but the vision is a long way from reality.
As is usual with these deals, the theory looks sound. Putting together the venerable LME with a dynamic Asian company on China’s doorstep looks like a perfect recipe to enter the world’s largest metals market, which so far has been largely closed to foreign traders and investors………………………………………..Full Article: Source

Bangladeshi plans to set up commodities exchange in Burma

Posted on 27 June 2013 by VRS  |  Email |Print

Wali-ul-Maroof Matin, currently the Chairman and Managing Director of the Bangladesh based Alliance Capital Asset Management Limited, is setting up a commodities exchange in Burma that will be open to international investors, according to a company statement.
“Seeing the opportunity I took the initiative six months ago to run the commercial operations for the commodities exchange in Burma for at least nine months,” said Matin. Burma’s commerce ministry has recently approved the project. A commodity exchange is a marketplace where various commodities and derivatives products are traded………………………………………..Full Article: Source

Bangladeshi plans to set up commodities exchange in Burma

Posted on 27 June 2013 by VRS  |  Email |Print

Wali-ul-Maroof Matin, currently the Chairman and Managing Director of the Bangladesh based Alliance Capital Asset Management Limited, is setting up a commodities exchange in Burma that will be open to international investors, according to a company statement.
“Seeing the opportunity I took the initiative six months ago to run the commercial operations for the commodities exchange in Burma for at least nine months,” said Matin. Burma’s commerce ministry has recently approved the project. A commodity exchange is a marketplace where various commodities and derivatives products are traded………………………………………..Full Article: Source

Commodity markets pin hopes on Hong Kong ties

Posted on 26 June 2013 by VRS  |  Email |Print

Mainland commodity exchanges are looking to co-operate with Hong Kong Exchanges and Clearing in developing the trading of new commodities and cross-listing their products. They hope to gain a greater share of the global market through this after HKEx announced plans to develop the city into a commodities trading hub.
Calling the city’s exchange a “partner” rather than a “competitor”, Zhengzhou Commodity Exchange president Zhang Fan said he wanted to develop trading of new commodities with HKEx and list the new products “wherever suitable”, so that mainland bourses could share in the pie as transaction volumes increased………………………………………..Full Article: Source

Hong Kong ‘not ready to be a commodities trading centre’

Posted on 26 June 2013 by VRS  |  Email |Print

Commodities brokers and buyers say Hong Kong does not yet have the trading infrastructure to be a major commodities centre. That may change in the future as traders seek to take advantage of growing demand for commodities from the mainland.
“Hong Kong’s commodities trading infrastructure is not complete, which means there is little room for trades and related financial products development to occur. This results in a low participation in commodities trading,” Li Baomin, chairman of Jiangxi Copper, told the London Metal Exchange conference in the city………………………………………..Full Article: Source

HKEx says commodities contracts to be cash settled

Posted on 26 June 2013 by VRS  |  Email |Print

Hong Kong Exchanges and Clearing (HKEx) chief executive Charles Li said Tuesday that new commodities contracts to be introduced by the exchange would initially be cash-settled products.
“We are going to start with cash-settled products and over time… We will develop physically deliverable capabilities,” Li said in a speech to a conference in Hong Kong. “Most likely the contract we will look at in Hong Kong will be cash settled, will be monthly and will be different sizes from the current contract,” he added………………………………………..Full Article: Source

Is the 136-year-old London Metal Exchange ready for a woman CEO?

Posted on 26 June 2013 by VRS  |  Email |Print

The next chief of the London Metal Exchange (LME), where only men take part in the shouted, testosterone-fuelled trading of materials like copper, may be a woman who prides herself on speaking softly.
Industry sources say Harriet Hunnable, managing director of metals at the CME Group, is among potential candidates to be LME chief executive when Martin Abbott leaves the post at the end of this year. “That’s a super compliment,” Ms Hunnable said this week when asked about talk of her candidacy. “But I’m enjoying my role at CME group and I’ve got a lot of things to do here,” she added………………………………………..Full Article: Source

Only nod by Beijing can make commodities dream come true

Posted on 25 June 2013 by VRS  |  Email |Print

With the LME Week taking place this week, it is time to look at why Hong Kong has failed in its many attempts to introduce commodities trading. Without Hong Kong Exchanges and Clearing’s £1.39 billion (HK$16.6 billion) purchase of the London Metal Exchange last year, it is hard to imagine 1,000 commodities traders, producers and end users flying to Hong Kong to attend a three-day seminar.
The LME deal was yet another effort by Hong Kong to achieve the city’s dream of turning itself into a commodities trading centre. Back in the 1980s, the former Hong Kong Futures Exchange, which later combined with the stock exchange to form the HKEx, introduced cotton, sugar, soyabean and gold trading. However, turnover was so thin that it was abolished in the 1990s………………………………………..Full Article: Source

Indian Commodity Exchange, Universal Commodity Exchange in talks for merger

Posted on 25 June 2013 by VRS  |  Email |Print

Merger talks have surfaced in the decade-old commodity futures market. Universal Commodity Exchange, promoted by Commex Technology, owned by IT entrepreneur Ketan Sheth, is learnt to have called on R-ADA, anchor investor through Reliance Exchange Next, in loss-making Indian Commodity Exchange (ICEX), for a possible merger, sources said.
However, the talks did not progress to a conclusive state, according to a person aware of the discussions. Ketan Sheth’s phone was switched off while Sanjay Saksena, ICEX CEO, could not be contacted immediately……………………………………….Full Article: Source

Volatility gives boost to metal exchange

Posted on 25 June 2013 by VRS  |  Email |Print

Recent volatility in global commodity prices may help lift the trading volume on the London Metal Exchange as demand for hedging services increases. Chow Chung-kong, chairman of Hong Kong Exchanges and Clearing (0388), which owns the LME, said trading volume on the British-based platform reached record highs in April and May, thanks to fluctuating commodity prices.
Chow’s comments came after the LME signed a memorandum of understanding with the Bank of China to examine the feasibility of exchange contracts being cleared in yuan………………………………………..Full Article: Source

CME considers soft commodities contracts as ICE takes over Liffe

Posted on 21 June 2013 by VRS  |  Email |Print

CME Group Inc., the largest futures exchange, is considering new soft commodities contracts to compete with IntercontinentalExchange Inc (ICE). and NYSE Euronext Liffe, according to four people familiar with the situation.
CME, which is starting a new exchange in London this year, is talking to traders and brokers about new sugar, cocoa and coffee derivatives, according to the people, who asked not to be identified because the information isn’t public………………………………………..Full Article: Source

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Hong Kong Exchanges may list cash-settled commodity contracts

Posted on 21 June 2013 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd., the world’s second-largest bourse operator, said it plans to list commodity futures that are settled in cash.
The new contracts may be iron ore, coking coal and agricultural products and denominated in the Chinese currency, a spokesman said by phone today. The exchange has yet to set a start date, he said………………………………………..Full Article: Source

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