In particular, it will suspend the opening of new trading positions for all spot commodities
traded on the exchange starting on June 12, 2017.
Core first-half earnings of HKEX's commodity division -- almost exclusively LME business -- slumped by 19% to HK$513mn as trade in metals declined while hiring linked to a new spot commodities trading platform in China drove up costs.
Operating expenses jumped by 15%, mostly due to hires for "strategic initiatives" such as HKEX's plan to roll out a spot commodities trading platform in Shenzhen.
DME is excited about this new auction capacity, which will enable the Exchange to offer a very attractive solution to customers in the Gulf that are looking to buy or sell spot commodities
in a transparent and fair manner," said Owain Johnson, Managing Director of DME.
This offers customers the advantage of a transparent platform to trade spot commodities
for immediate delivery.
The rise in oil prices is a sign that as financial markets destabilize, investors are shifting dollar assets into oil, gold and other spot commodities
According to Rosine (1987), consumption of spot commodities
as a share of nominal GDP ranged from 8 percent to 10 percent from 1973 to 1981, but fell to just 4 percent by 1986.
The spot commodities
brokerage service designed for regional clients has been well received by the market, which helps reduce trading costs, improve deal efficiency, provide more business options and increase deal rates.
We are very excited about this new auction platform, which will enable the Exchange to offer a very attractive solution to customers in the Gulf that are looking to buy or sell spot commodities
in a transparent and fair manner.