Commodity News

SMX completes first trading, clearing & settlement cycle

Singapore, 2 September 2010

Singapore Mercantile Exchange ( SMX), the first pan-Asian multi-product commodity and currency derivatives exchange, successfully completed its first trading, clearing and settlement cycle.

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Growth in commodity derivatives set to slow

London, 1 September 2010

After a period of explosive growth in the past decade, the market for commodity derivatives is starting to look increasing mature, and set to expand much more slowly in the next few years. It is unlikely futures and options markets for oil and gas, as well as industrial metals such as copper and aluminium, will experience significant growth in the next 2-3 years.

Read more: Growth in commodity derivatives set to slow

France steps up tougher rules campaign

Source: Financial Times, 31st August 2010

France stepped up its campaign to overhaul commodities oversight in Europe, urging the European Commission to implement comprehensive regulation of raw materials markets, including limits on the number of contracts that each participant can hold.

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SMX goes live

Singapore, 31 August 2010

Singapore Mercantile Exchange ( SMX), the first pan-Asian multi-product commodity and currency derivatives exchange, commenced operations on its cutting-edge electronic trading platform with the ringing of the opening bell by Mr. Ong Chong Tee, Deputy Managing Director of the Monetary Authority of Singapore (MAS).

Read more: SMX goes live

Glencore plans listing of gold unit

Source: Financial Times, 26th August 2010

Glencore plans to list its main gold business next year in a move that people close to the largest commodities trader expect will value the operation at least $5bn.

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Firm faces civil charges for US oil trading mayhem

New York, 26 August 2010

A big high-frequency trading firm faces possible civil charges by regulators after its computer ran amok and sparked a frenzied $1 surge in oil prices in February, according to documents obtained by Reuters and sources familiar with the continuing investigation.

Infinium Capital Management confirmed only that it is the company at the center of a six-month probe by CME Group Inc into why its brand new trading program malfunctioned and racked up a million-dollar loss in about a second, just before markets closed on Feb. 3.

Read more: Firm faces civil charges for US oil trading mayhem

Commodities rebound boosts Glencore

Source: Financial Times, 26th August 2010

Glencore, the world's largest commodities trader, reported on Thursday that first-half net income had surged 42 per cent on the back "of the gradual recovery in the global economy and generally higher average commodity prices".

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China goes against grain with crop imports

Source: Financial Times, 25th August 2010

While agricultural markets focus on Russia's devastating drought, another large shift in soft commodity production and consumption is lurking in the background: China's mediocre crops this year, combined with a shift in dietary habits, have strained the country's traditional sufficiency in grains, leading to higher prices and large imports.

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FSA outlines a fundamental review of trading activity regulation

London, 25 August 2010

The Financial Services Authority (FSA) has today published a discussion paper (DP) that considers fundamental changes to the regulation of trading activities – one of the key recommendations of the Turner Review following material trading losses incurred during the crisis.

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Oil remains trapped in tango with equities

London, 25 August 2010

U.S. crude oil futures are again sinking in tandem with U.S. equity markets -- sparking another round in the now familiar debate about whether crude prices are reacting to poor fundamentals (rising inventories and disappointing demand growth) or reacting willy-nilly to negative sentiment about the macro picture.

The most realistic explanation combines elements of both. Crude oil prices could rise strongly in 2009 and early 2010 despite plentiful inventories as long as investors could look through the "temporary" surplus to focus on a medium term picture of strong demand growth which would drawn down stocks and lead to a tight or at least balanced market.

Read more: Oil remains trapped in tango with equities