The partnership will give the LME better market penetration in Asia, which is the world’s biggest market for metals like zinc and copper. Rapid industrial growth has helped the region become a key player in the commodities futures field.
SGX will gain the distinction of being the first Asian exchange to offer metals futures priced from the LME’s global benchmark prices.
Martin Abbott, the LME’s chief executive officer, said, “We are happy to announce this exciting development. We believe this will encourage a new group of market participants in the region who will, through this collaboration and provision of mini futures contracts jointly with the SGX, benefit from local access to the LME’s globally accepted benchmark price in non-ferrous metal and steel.”
The first two contracts to be available will be the copper and zinc futures, which the SGX says will debut in the first quarter of 2011, pending regulatory approval. Demand should be high, given Singapore’s importance in the regional futures markets and the explosive pace of Chinese industrial and construction growth.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.