| NCEL launches awareness drive for rice trading
KARACHI: National Commodities Exchange Limited (NCEL) on Monday launched a month-long pre-launch programme and investor awareness drive ahead of the commencement of listing and trading of its IRRI-6 Rice Futures Contract.
Managing Director Assim Jang said NCEL will be in Kandhkot, in upper Sindh, holding the first of investor awareness seminars aimed at informing the potential participants, including growers, millers, traders and exporters of the details of Futures Trading in IRRI-6 rice and encouraging their participation.
We have chosen these areas to start out investor awareness drive as they are the trading hubs of IRRI-6 rice, Assim said adding, we feel it is important to reach out to the key participants in our market on a one-to-one basis, they will not only ultimately benefit from this new contract, but also will provide NCEL with the necessary depth and liquidity, he added.
NYSE takes stake in India’s MCX
NYSE Euronext has bought a 5 per cent stake in India's largest commodities exchange, expanding its presence in the fast-growing economy. The US group, which runs New York Stock Exchange, also has a stake in India's biggest stock market. .
DGCX secures Singapore approval
Dubai: The Dubai Gold and Commodities Exchange (DGCX) yesterday announced that it had secured approval from the Monetary Authority of Singapore (MAS), making DGCX a Recognised Market Operator (RMO) in Asia's key trading hub. With the approval, DGCX - the Middle East's first commodities derivatives market - could now offer Singapore-based market participants direct access to its growing portfolio of commodity and currency contracts. Commenting on the approval, Ahmad Bin Sulayem, chairman of DGCX, said, "Not only will this approval create opportunities for market participants based in Singapore, but is a clear demonstration of our commitment to meet customer demand for wider marker access". .
Go with the grain when shares fall
My second pick is connected to the soft commodities boom. One of its downsides is that the high price of food across the world is bumping up inflation numbers already being hit by rising wage demands and energy costs. You can protect yourself against inflation to a degree by buying gold, but also by getting into the government bond market and in particular index-linked gilts, the return on which is linked to the Retail Prices Index. You used to be able to buy these pretty simply via the Post Office, but money-laundering regulations have now made doing so a tedious, administration-heavy task. Luckily the exchange-traded fund business has once again come to the rescue with the iShares £ Index Linked Gilt ETF (INGX) which tracks the returns from the index-linked market.
HSBC to set up brokerage in UAE equity markets
The company, to be called HSBC Middle East Securities, will offer UAE domestic market brokerage services to both institutional and retail investors. The company is expected to begin trading for institutions by the end of 2007, and to offer retail brokerage services in 2008. Emirates Securities and Commodities Authority (ESCA), the regulator for the UAE's securities markets, recently granted HSBC authorisation to establish the brokerage company. The authorisation is subject to the various legal and infrastructural requirements meeting the approval of ESCA, as well ADSM and DFM. With this approval, HSBC is poised to become the first global bank on the UAE's exchanges. HSBC already buys and sells UAE shares on behalf of Western institutions through third party brokers. In addition, HSBC is a sub-custodian on both ADSM and DFM, and this service will continue to be provided by the bank's specialist sub-custody operation.
Commexes told to liberalise delivery format
MUMBAI: Commodity markets regulator Forward Markets Commission (FMC) has asked the futures exchanges to relax the delivery parameters and permit deliveries outside the demat format. Demat is a system where securities like shares, debentures and even commodity futures are converted from the physical form into electronic data and stored in the computers of a depository.
FMC chairman BC Khatua feels that the demat system is not ideal for commodities. He suggested that investors should be allowed to keep their material in their own godowns if they choose to do so. This could be either because they want to avoid the incremental costs of transferring to exchange-approved warehouses, or lack of storage space in exchange warehouses. Currently, this is not permitted by exchanges when deliveries have to be carried out.
Barclays Launches Eight Commodity Sub-Sector iPath(R) Exchange Traded ...
NEW YORK, Oct. 24 /PRNewswire/ -- Barclays Bank PLC announced today the launch of eight new iPath(R) Exchange Traded Notes (ETNs) on the NYSE Arca stock exchange. The iPath ETNs are the first Exchange Traded Notes designed to offer exposure to sub-indexes of the Dow Jones-AIG Commodity Index(SM). They are linked to agriculture, copper, energy, grains, industrial metals, livestock, natural gas, and nickel. "The new iPath sub-sector ETNs provide investors with access to harder-to- reach markets," said Philippe El-Asmar, Head of Investor Solutions, Americas at Barclays Capital. "Investments in iPath Exchange Traded Notes surpassed $3.6 billion in just under 16 months from inception, and we believe these new ETNs will continue to attract attention particularly with daily creations and redemptions available since October 1, 2007." "The new iPath ETNs demonstrate Barclays continued commitment to providing investors with innovative investment solutions to the commodity markets," added Benoit de Vitry, Head of Commodities, Emerging Markets Rates and Quantitative Analytics at Barclays Capital.
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