Industrial and Commercial Bank of China (ICBC), the world’s largest bank by assets, has become a settlement bank for the Dubai Gold & Commodities Exchange (DGCX), the exchange said on Tuesday, allowing more investors to clear transactions in yuan.
ICBC becomes the second Chinese bank to join DGCX’s wholly-owned subsidiary, Dubai Commodities Clearing Corporation, as a clearing and settlement bank. Bank of China became a member in March. The four other settlement banks are Dubai-based Emirates NBD, Standard Chartered, HSBC and India’s Bank of Baroda………………………………….Full Article: Source

China’s futures brokers have been banned from providing margin financing, part of tighter measures aimed at cracking down speculation in the overheated financial market, according to a report in state-owned Shanghai Securities News.
The move by the China Securities Regulatory Commission comes amid other sweeping measures by the country’s major commodities exchanges this week, six months after the government stepped in to try to deflate a speculative bubble in the market…………………………………..Full Article: Source

China’s main commodity exchanges have asked finance firms to register details of their products, the latest move by Beijing to increase supervision over risky products. China has taken a series of steps this year to cool the rise of highly leveraged commodities futures products as part of an attempt to reduce risk in financial markets.
Futures firms, funds, trust companies, brokerages and insurers, among others, will need to register their asset management products, the Dalian Commodity Exchange, Shanghai Futures Exchange and Zhengzhou Commodity Exchange said in notices posted on Tuesday………………………………………Full Article: Source

To prevent an order to exit, the Ahmedabad-based National Multi Commodity Exchange (NMCE) wishes to merge with an existing bourse in the segment. It has to do so before before May 5, 2017, the deadline for meeting the minimum net worth criteria.
It commenced operations in November 2002, about a year before the two established comexes, Multi Commodity Exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX) did so. However, it lost its first-mover benefit. Focused primarily on plantation and cash crops, NMCE lost to the other, due to lack of technology and product innovation…………………………………….Full Article: Source

CME Group Inc. will start London gold and silver contracts in January to offer a spread between spot prices and benchmark U.S. futures, competing with similar planned contracts from Intercontinental Exchange Inc. and the London Metal Exchange.
CME’s new contracts will be listed on Comex in New York and begin trading on Jan. 9, pending a regulatory review, the world’s largest futures exchange told reporters at a briefing in London on Tuesday. The spread will be based on the new spot contracts and active Comex futures, it said……………………………………Full Article: Source

Shanghai Gold Exchange and Dubai Gold and Commodities Exchange signed an agreement on Friday in Shanghai which makes the DGCX the first foreign exchange to use the SGE’s renminbi-denominated gold benchmark. The SGE is in talks with other exchanges about similar cooperation, according to an SGE circular.
SGE is the world’s largest physical bullion exchange. The renminbi-denominated gold benchmark, also known as Shanghai Gold was launched in April this year. It is one of China’s efforts to earn more say over pricing of the precious metal and increase its influence in the global gold market…………………………………….Full Article: Source

The Hong Kong bourse will copy the iconic open outcry trading ring at the London Metal Exchange (LME) in its new spot commodity platform in mainland China, seeking to lure Chinese producers and consumers.
Qianhai, a new free trade zone near Hong Kong, will host the platform being put together by Hong Kong Exchanges and Clearing Ltd (HKEX) for trading metals before expanding into other commodities. “If you visit that exchange, which we are just setting up and will be launching products next April, you will see it looks just like the LME, it actually has a ring,” HKEX chief executive Charles Li said……………………………………Full Article: Source

In a bid to increase participation of the London Bullion Market Association Gold Price, administrator ICE Benchmark Administration said Monday that it will be introducing central clearing of the price discovery mechanism in March 2017, backed by a loco London futures contract.
Finbarr Hutcheson, president of IBA said that the number of participants in the LBMA Gold Price has grown from four to 13 since launching in 2015 “and we continue to see strong demand from other firms, which we believe the introduction of central clearing will further support.”………………………………….Full Article: Source

Even though there is a demand and there are requests to implement co-location facilities in the commodities market, the market regulator said that it do not think that it is time for allowing the facility in the segment.
S K Mohanty, executive director, the Securities and Exchange Board of India (Sebi), said that while algorithmic trading (algo trading) is part of trading strategy and is more applicable to non-agri products, the market regulator has not thought of bringing in co-location facilities in commodities……………………………………Full Article: Source

Guo Xiaoli will serve as the new Chief Executive of the upcoming Qianhai commodity-trading platform. Hong Kong Exchanges and Clearing Limited (HKEX) has introduced its Qianhai commodities platform, which will help the group compete with other global exchanges, simultaneously servicing a clientele in Mainland China, according to an HKEX statement.
Hong Kong Exchanges and Clearing Limited (HKEX) has introduced its Qianhai commodities platform, which will help the group compete with other global exchanges, simultaneously servicing a clientele in Mainland China, according to an HKEX statement……………………………………..Full Article: Source

When commodity exchanges launch options contracts, it may lead to some cannibalization, since they are far cheaper to trade and provide higher leverage vis-a-vis futures contracts.
Multi Commodity Exchange of India Ltd’s (MCX) shares have risen by around 40% in the past three weeks. Investors are evidently excited about Securities and Exchange Board of India’s (Sebi) decision to permit trading in commodity options, besides drooling over rumours that Chicago Mercantile Exchange is likely to pick up a stake in MCX………………………………….Full Article: Source

CME Group’s metals trading volume averaged 383,000 contracts/day in September, up 30% on the year, the US exchange group said Tuesday. Gold futures and options average daily volumes rose 34% year-on-year to 225,000 contracts, with silver futures and options up 58% to 68,000 contracts, CME said.
CME’s suite of metals products includes precious metals (gold, silver, platinum and palladium), base metals (copper, aluminum, aluminum alloy, alumina, zinc and lead) and ferrous metals (iron ore, ferrous scrap, hot rolled coil and steel billet)…………………………………….Full Article: Source

The Securities and Exchange Board of India has taken up the task of sprucing up commodity trading with great zeal ever since it took charge of exchange-based commodity trading last September. The task before the regulator is, however, far from easy.
Commodity exchanges have so far existed as a closed club with relatively lax regulations that provided room for price manipulations and other unfair practices. Investors and traders have been giving these exchanges a wide berth due to thin volumes and erratic price movements on the counters……………………………………….Full Article: Source

The CME Group, owner and operator of the world’s largest derivatives marketplaces, has moved to a low-code platform for business process management. Commodities trading is fast-paced, highly regulated, and critical to the economy. CME Group owns and operates the Chicago Mercantile Exchange, the largest options and futures trading exchange in the world, along with the Chicago Board of Trade, the New York Mercantile Exchange (NYMEX), and COMEX.
CME Group sounds like the sort of organization that would hew to a conservative, time-tested development platform for applications. But according to Ari Studnitzer, managing director of architecture and product management at CME Group, the company has embraced a low-code platform that is helping keep both users and regulators happy………………………………………Full Article: Source

LME plans to cap rent costs at registered warehouses in an effort to fight back against cheaper, private facilities. It is getting harder to know how much of the world’s metal is in storage, and that is a problem for anyone trying to determine a market price for aluminum, copper or nickel.
Warehouses registered with the London Metal Exchange have been a major storage hub of base metals for dozens of years. These facilities provide inventory data on a daily basis, making them a handy gauge of industry supply……………………………………Full Article: Source

Markets regultaor Sebi today said it is reviewing norms to allow portfolio managers in the commodity markets. The Securities and Exchange Board of India (Sebi) further said that currently Portfolio Manager Services (PMS) would not be permissible in the commodity markets.
“Sebi is currently reviewing norms with regards to participation in commodity derivatives market,” the regulator said in a circular adding “PMS currently would not be permissible in the commodity derivative market.” The regulator has directed all commodity exchanges to treat a defaulter at any one of them as a defaulter on all the bourses……………………………………Full Article: Source

Sberbank (Switzerland) AG has become an international member of the Shanghai Gold Exchange (SGE), Sberbank CIB, the corporate and investment banking business of Sberbank, said on Tuesday.
The membership will open the opportunity for the company to participate in a greater capacity as a supplier to the world’s largest consumer of gold, Andrey Shemetov, managing director and head of global markets department at Sberbank CIB, said……………………………………Full Article: Source

Markets regulator Sebi today asked commodity exchanges to make quarterly disclosure about disablement of member terminals, along with duration of such activity, due to shortage of funds and margins.
Sebi had started regulating commodity markets after the merger of Forward Markets Commission (FMC) with the markets regulator in September last year. This circular is being issued to consolidate and update such norms prescribed for commodity bourses by erstwhile FMC. …………………………………….Full Article: Source

Multi Commodity Exchange of India (MCX) has signed a memorandum of understanding (MoU) with Mozambique Commodities Exchange (also known as Bolsa De Mercadorias De Moçambique (BMM) for strategic co-operation. BMM envisages to develop Mozambican commodity markets ecosystem consisting of energy, base metals and agricultural products to deliver better value for the stakeholders.
As, MCX intends to help the Mozambique exchange realise potential behind its resource-rich economy through sharing market and capacity development expertise. Both the exchanges plan to share knowledge, research and expertise which is expected to result in opening up of new avenues for mutual cooperation…………………………………….Full Article: Source

The Tokyo Commodity Exchange on Tuesday put into operation a new trading system that includes extended hours to permit trading at times when economic data is announced. It will also facilitate higher-speed transactions. It is the first such upgrade for the exchange since May 2009, aiming to improve convenience for investors and reinvigorate the sluggish commodity futures market.
TOCOM will share its derivatives trading system with the Osaka Exchange, a unit of Japan Exchange Group Inc., or JPX. Commodity futures industry officials hope that the joint use will encourage stock brokerage firms to start commodities trading………………………………………Full Article: Source

Lax risk management rules have been cited as one of the reasons that led to the NSEL debacle. It is, therefore, not surprising that the current commodity market regulator, the Securities and Exchange Board of India, is focusing on the risk management rules in the commodity exchanges.
Early this month, it released a circular that tightened the rules for collecting trading margins on commodity derivative contracts and for contributions to the Trade Guarantee Fund (TGF). Here, we take a closer look at the changes made to the manner in which the TGF is maintained by the exchanges………………………………………..Full Article: Source

Owner of LME will keep new platform tied to physical metals after excesses in futures trading. The owner of the London Metal Exchange aims to target Chinese commodity traders concerned by speculative excesses on the country’s domestic bourses, with plans to establish a physical metals trading platform in mainland China next year.
Charles Li, chief executive of Hong Kong Exchanges and Clearing, which bought the LME in 2012, said its planned exchange in Qianhai would make sure prices remained tied to the underlying economy by underpinning it with an LME-style warehouse system for the physical delivery of metal………………………………………..Full Article: Source

Asian exchange hopes to establish Singapore as ideal location for trading and settlement of shipping contracts. SGX has moved closer to clinching an acquisition of the Baltic Exchange, after agreeing terms with the UK bourse and winning backing from shareholders representing a majority of share capital.
The Singapore exchange and the Baltic said on Monday they had agreed a cash bid of £160.41 per share and a final dividend of £19.30 per share, revised up from £18.80 offered two weeks ago………………………………………..Full Article: Source

Members see an electronic trade repository as the best way to improve transparency. The body charged with regulating London’s $5tn a year gold market says banks in the city are backing its plans to bring greater transparency to the market as the London Metal Exchange prepares to launch a gold futures exchange.
Ruth Crowell, head of the London Bullion Market Association, said its members, which include some of the world’s biggest banks, see an electronic trade repository as the best way to improve transparency and address regulatory pressure that is threatening to drive up costs………………………………………..Full Article: Source

Middle Kingdom may offer LME liquidity and volume as it adjusts to commercial operations. If it’s been a tough time for commodity traders, it hasn’t been any easier for the exchanges on which they trade and hedge their exposures.
The London Metal Exchange was bought in 2012 by Hong Kong Exchanges and Clearing for what seemed to many like an eye-watering sum of £1.4bn. Most of that went to its members, in direct proportion to the number of shares they held; the amounts received varied from around £30m-odd to approximately £100m for those who had the foresight to mop up the available shares as members quit the LME in prior years………………………………………..Full Article: Source

Hong Kong Exchanges & Clearing Ltd. said earnings from its commodities business — primarily the London Metal Exchange — extended their slump in the first half as the world’s biggest metals bourse battles lower trading volumes.
The unit’s earnings before interest, tax, depreciation and amortization fell 19 percent to HK$513 million ($66 million) in the six months to June, from HK$632 million a year earlier, for their second consecutive decline over the half-year period. The HKEx’s first-half Ebitda across all its businesses, including equities and derivatives trading, fell 25 percent………………………………………..Full Article: Source

Three decades after London’s exchange-traded gold contract flopped, it’s coming back. The London Metal Exchange, along with the World Gold Council and a group of banks and trading firms, are starting a new venture called LMEprecious, which will introduce centrally-cleared gold and silver contracts in the first half of next year, and later add platinum and palladium, according to a joint statement.
The LME is moving into gold to capture part of the $5 trillion over-the-counter market in London, the global hub for trading the metal, as regulators push for more regulation over commodities trading and centralized clearing………………………………………..Full Article: Source

Parent group HKEx in climbdown after chief had said group was not ‘ripping off’ customers. The London Metal Exchange has bowed to pressure from disgruntled members and slashed fees for one of its most popular trades in an attempt to stem falling activity.
The move is a climbdown for the world’s centre for metals trading and its parent company Hong Kong Exchanges and Clearing, which bought the 139-year-old exchange for £1.4bn in 2012. Charles Li, chief executive of HKEx, had defended the LME’s fee structure as recently as June, saying its charges were not excessive and it was not “ripping off” its members………………………………………..Full Article: Source

Tanzania Commodity Exchange (TCX) is set to make Tanzania a hub for commodity trading in East African region that will involve setting up exchange associations and fostering relationships with International agencies. This is according to TCX Chief Executive Officer and Managing Director, John Chaggama.
Commodity Exchanges integrates functioning of several key components of agriculture trade namely farmers, traders to services like Warehouse and Warehouse receipt system. It brings in standardization of quality and allows people to trade using efficient banking channels making transactions more transparent and fast for the participants………………………………………..Full Article: Source

Foreign day traders were breaking rules and dodging regulators when Chris Concannon left Nasdaq Inc. in 2009. When he returned to the exchange industry five years later, he was dismayed to find it was still happening.
Now Concannon, back in the industry as chief executive officer of Bats Global Markets Inc., is leading the charge against brokers that enable manipulators. Bats got regulators’ approval to move quickly against market participants whose clients engage in illegal practices like spoofing, barring them in weeks rather than the months or years it used to take………………………………………..Full Article: Source

The Securities and Exchange Board of India (Sebi) is to finalise stricter regulations for warehouse service providers (WSPs) that are recognised by commodity exchanges (comexes), especially for storing goods meant for selling on the exchange platforms. This will be very significant for trading in agricultural commodities.
Sebi has asked its Commodity Derivatves Advisory Committee to give its views and a meeting this month will discuss the new regulations. Sebi will be assigning the responsibility of settlement of futures contracts to commodity derivatives exchanges………………………………………..Full Article: Source

Singapore Exchange Ltd (SGX) is readying a formal offer to buy London’s Baltic Exchange following months of discussions that culminated in exclusive talks between both parties, sources familiar with the matter said on Tuesday.
Founded in 1744, the privately-owned Baltic Exchange is no longer a forum for chartering vessels but owns benchmark indexes for global shipping rates and provides a trading platform for the multi-billion dollar freight derivatives market. The sources said both sides had reached key milestones for a deal to proceed and that SGX was getting ready to make a formal offer………………………………………..Full Article: Source

Since the absence of stock in warehouses was at the heart of the NSEL settlement crisis, Forward Markets Commission also overhauled warehouse norms. A merger which was in the works since 2006 finally came to fruition almost a decade later, hastened by the Rs.5,574-crore settlement crisis in National Spot Exchange Ltd (NSEL).
Folding in the Forward Markets Commission (FMC), the erstwhile commodity markets regulator, with the Securities and Exchange Board of India (Sebi) in September 2015 is perhaps the most important fallout of the NSEL crisis, say market participants………………………………………..Full Article: Source

The country’s largest commodity exchange MCX has been awarded as the ‘Best Commodity Exchange’ by the Bullion Federation, a national level apex body of bullion industry.
The award recognises MCX’s commitment towards developing a vibrant commodity futures market in India by providing a robust and efficient platform for price discovery and risk management across a diverse range of precious metal, energy, base metal and agriculture products, the exchange had said in a statement on Tuesday………………………………………..Full Article: Source

Britain’s vote to leave the EU has prompted the Hong Kong stock exchange (HKEX) to put on hold a commodities clearing link with its London Metal Exchange (LME), dealing a blow to its bid to make the LME more profitable.
Hong Kong Exchanges & Clearing Chief Executive Charlies Li said the planned link-up would now have to wait due to the uncertainty created by the British vote last month. Other LME initiatives, however, should not be affected by the Brexit vote, Li wrote in his blog published on Wednesday………………………………………..Full Article: Source

Globally, base metal trading has expanded since the sale of the London Metal Exchange (LME) to the HKEx. Taking the two main exchanges for base metals – the LME and the Shanghai Futures Exchange (SHFE) – the average monthly volume of the six main base metals rose 23.8% since July 2012.
At the same time, the LME share of the trading has fallen from 89.7% in July 2012 to 77.8% in June 2016, even taking out the double-counting of Chinese contracts. The LME has lost its position due both to self-imposed measures, the growth of other exchanges, and the shift in the globally center of manufacturing to East Asia………………………………………..Full Article: Source

The Tokyo Commodity Exchange Inc. (TOCOM) has announced today that July 25th will be the start date of new Gold Physical Transaction, pending regulatory approval. Gold is the most actively traded commodity at the Exchange with both futures and options contracts listed.
Simultaneously, TOCOM will introduce a delivery at settlement option for the Gold Rolling Spot contract. Originally a cash-settled contract, the change is expected to better serve investor needs………………………………………..Full Article: Source

Six major international commodity exchanges saw trading volume jump 16% year on year during the first half of 2016, fueled by an inflow of funds to crude oil and safe-haven buying of gold.
About 887.19 million contracts changed hands during the first six months of the year, marking the fourth straight half to see year-on-year growth. The survey covered the New York Mercantile Exchange, the Chicago Board of Trade, the Intercontinental Exchange in the U.S. and Europe, the London Metal Exchange and the Tokyo Commodity Exchange………………………………………..Full Article: Source

Leading bourse Bombay Stock Exchange (BSE) plans to launch commodity derivative segment which will allow trading in metals and has approached market regulator Sebi for approval. “BSE plans to set up a commodity derivative segment as soon as approvals are in place. It would consist of non-agricultural commodities like metal, oil and gas,” BSE Managing Director and CEO Ashishkumar Chauhan said.
Post the merger of the capital market regulator Sebi and commodity market watchdog Forward Market Commission (FMC), the exchange members need not create a separate subsidiary to start commodity trading………………………………………..Full Article: Source

The Shanghai Futures Exchange has vowed it won’t tolerate any abuse of trading rules after the unprecedented boom-bust episode earlier this year, adding that its products aren’t for mom and pop investors.
“Futures isn’t a mass market but a professional one,” the exchange said in comments to Bloomberg News. There’ll be “zero tolerance” of any activity that violates regulations, according to the statement, which said more than 900 cases of what it called abnormal activity were settled in the first five months………………………………………..Full Article: Source

Britain-based commodity exchanges may have some leeway in the way they manage large positions after the UK exits the European Union, but they will still have to comply with EU rules from 2018, experts say.
Position limits, a way of controlling how much of an individual commodity trading firms can hold, are being introduced for the first time in the Markets in Financial Instruments Directive II (MiFID II) from January 2018. Britain voted to leave the EU last month, but its exit has to be negotiated with the remaining 27 members, a process that is meant to be completed within two years of triggering a formal legal process………………………………………..Full Article: Source

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

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

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

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

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

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

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

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

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