August 2009,  Issue 23
 

• It is a post-trade clearing service - execution remains in the OTC market.
• Contracts remain as forwards in clearing and are not converted to futures contracts.  Every trade establishes a new open position.  There is no liquidation.  Upon reaching delivery, positions are netted down and CME Clearing remains in the delivery process.  Delivery occurs at London Precious Metals Clearing (LPMCL) member banks using "London Good Delivery Gold."
• Open trades are held on a gross basis at their original trade price.
• Each business day, every open trade is marked from original trade price to the daily settlement price, with +/- differentials discounted to present value.  The resulting net discounted mark-to-market amount is "collateralized".  That is, it establishes a margin (performance bond) credit or liability.
• Clearing coverage for all good forward maturities that are physically deliverable into unallocated "London Good Delivery" gold (as defined by the LBMA) extends 10 years out.

The Tokyo Commodity Exchange recently announced that the exchange was considering the introduction of copper, zinc, lead and liquefied petroleum gas futures contracts.  

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ELX FUTURES - NEW EXCHANGE LAUNCHED

On 10 July 2009, Electronic Liquidity Exchange (ELX) Futures,  a new fully electronic futures exchange, based in New York,  was launched.  It was established by a number of well-known banks and trading firms. In May 2009, the exchange received regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC) as a Designated Contract Market.

ELX Futures' initial product line includes electronic trading in U.S. Treasury futures in the 2, 5 and 10-Year Notes and 30-Year Bond contracts.  It also intends to launch other products, including options and derivatives based on commodities, equities and other financial products over the next few months and years.  ELX transactions will be cleared by the Options Clearing Corporation.

For more information, please go to:-

http://www.elxfutures.com

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ICEX - LAUNCH OF NEW EXCHANGE PLANNED

The Indian Commodity Exchange (ICEX), India's fourth national commodity bourse,  is planning to be functional by September 2009.  The Exchange is promoted by Indiabulls Financial Services Ltd (IBFSL), which owns 40% of the Exchange.   The remaining shareholders are Minerals and Metals Trading Corporation Ltd (26%), Indian Potash Ltd (10%), United Stock Exchange of India Ltd (10%), and Abhinay Trading Pvt Ltd (14%). 

The Exchange will start operations in bullion, metals, energy and agricultural commodities pending approval from The Forward Markets Commission.

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• Calcium Carbide - weblink:- http://calciumcarbide.org/reach_information.html
• Magnesium Hydroxide - weblink:- http://euromines.org/reach_information.html
• Graphite (synthetic) - weblink:- http://www.ecga.net/reach_information.html
• Graphite, acid-treated and sulphuric acid compound with graphite - weblink:- http://www.ecga.net/reach_information.html
• Carbon (carbon material) - weblink:- http://www.ecga.net/reach_information.html
• Coal, anthracite, calcined - weblink:- http://www.ecga.net/reach_information.html

• The CME Group - NYMEX - COMEX
   
• The Dubai Gold and Commodities Exchange - DGCX 
   
• The London Bullion Market Association - LBMA 
   
• The London Metal Exchange - LME  
   
• The Shanghai Futures Exchange - SHFE 
   
• The Tokyo Commodity Exchange - TOCOM