Chengdu Commodity Exchange Issues New Rules for Valued Metals Market
1888PressRelease – What does the new Valued Metals Market rule state?
CGCEX, an ideal trading destination for investors, traders and companies looking to invest, hedge or speculate by tapping into large pools of local, global and institutional investor capital, today announced that the Valued Metals Market rule changes for Customized Delivery and Declared Delivery. Accordingly to the new rules, the settlements will not be implemented via warehouse receipts but through the delivery of bars. This will eradicate the necessity of requiring an approval between the seller and the buyer. The updated rules will be applied from next month onwards and will be applicable to all contracts traded from that day onward.
CGCEX has stipulated early that the Valued Metals Market futures are settled by the delivery of the warehouse receipts for bullion and are stored in their storage units. The new rule will maintain and control the quality of the deliverable goods. The best thing about this rule is that everything will be carried out in an open marketplace where unnamed participants can conveniently distribute and trade bullion. However, there is a sudden rise in the number of participants, mainly international marketers, requesting exchange permit settlement via delivery of Valued Metals.
In response, CGCEX adjusted the rules and regulations for Customized Delivery and Declared Delivery. The adjustment made defines the obligations for the counterparties who want to deliver via mutual consent.
These updated rules will significantly ease down the boundaries imposed on the Valued Metals’ financial institutions and commercial participants. The reason why is because the commercial participants or other entities do not have any warehouse receipt issuance credentials when they want to deliver bullion on the market.
That is, a local Valued Metals processor might use gold bars for delivery bought from an international merchant without requiring a warehouse receipt issued. On the other hand, other traders and participants may use the gold bars purchased from an international vendor for delivery simply by reassigning the warehouse ownership.
About Chengdu Commodity Exchange
CGCEX is the premier exchange in Asia, based in China where it is operating as a market place for trading commodities and futures products. CGCEX is an ideal trading destination for investors, traders and companies looking to invest, hedge or speculate by tapping into large pools of local, global and institutional investor capital. Being one of the Asia’s leading exchange it is renowned because of dealing in an extensive range of products. From corporations to the individual and from the institutions to governmental agencies, the exchange believes that providing a sustainable investment opportunity to their clientele will help in building a healthy market.
http://www.cgcex.org
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