Key Developments in International Commodity Markets..!

Key Developments in International 

Commodity  Markets, May 2015

• CME Group will launch physically delivered Zinc futures contracts on June 29, 2015, pending regulatory approval. Zinc futures will be priced in U.S. dollars and will represent 25metric tonnes of physical material.

• London Metal Exchange (LME) is close to sealing deals with market makers to guarantee liquidity for its new steel re bar and scrap futures. The contracts are scheduled for launch in October.

• Dalian Commodity Exchange, on April 30, said that the results of its simulation testing for market making of the soya bean meal options were‘successful’. This followed 28 days of simulated trading.

• China has more than tripled the number of central government-owned firms permitted to trade overseas commodities derivatives without approval from the state assets regulator.

• Shanghai Futures Exchange plans to allow delivery of foreign-made nickel into its futures contracts as it seeks relief from a shortage of domestic supply to the bourse. Six brands made by six domestic companies are currently deliverable for the SHFE futures, which started trading inMarch.

• CME is developing a European gold futures contract to serve customers in London. The contract would mirror existing futures traded on CME's New York COMEX platform.

• Tokyo Commodity Exchange Inc. announced the elimination of position limits on Crude Oil Futures as of June 1, 2015. The underlying product of the Crude Oil Futures was changed from the blend of Dubai and Oman to Dubai, beginning June 2015 contract.

• Following the success of its Europe Cocoa futures, the CME Group announced on May 15 the launch of options on its physically delivered Cocoa futures contracts. These options will be listed on CME Group's European exchange, CME Europe, for the first trade on June, 29, 2015.

• Hong Kong Exchange aims to make international benchmark commodity futures available to traders in China while offering mainland contracts to overseas traders.

• London Metal Exchange has launched a Chinese version of the LME app, the exchange’s smartphone application providing metals data and tools. The LME app provides free market prices on a next day delayed basis for all LME-traded futures contracts.

• Dalian Commodity Exchange is opening up iron ore futures to vigorously promote the internationalization of the futures market based in Dalian

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