FIA Asia Comments on Shanghai INE Draft Rules

FIA Asia Comments on Shanghai INE Draft Rules

  • On Oct. 5, FIA Asia submitted a letter to the Shanghai International Energy Exchange commenting on the exchange's the third set of draft rules.
  • The INE will be the first exchange in mainland China to offer the trading of domestic futures contracts by overseas market participants. The first product proposed for launch will be crude oil futures.
  • FIA Asia encouraged the INE to consider matters such as cross-border regulation, operational implications of cross-border trading, enhanced governance, and further standardization and transparency of rules.
  • FIA Asia also encouraged the INE to introduce a block trading facility and extend the trading hours to facilitate trading by international participants, and made several suggestions in the area of clearing.

LBMA Silver Methodology


The LBMA Silver

Price is calculated using a daily auction. In each auction round participants submit bid and offer volumes against a suggested price for the round. If aggregate bids match aggregate offers within a set tolerance the auction will end. If aggregate bids do not match aggregate offer s within the set tolerance there will be a subsequent round in with an adjusted price (up if there are more bids than offers, down if more offer s than bids).

The Benchmark price for the day will be the price in the final round of the auction..The bids and offers in the final round will be transacted and settled between participants, with any mismatch of aggregate bids and offers shared between the participants.

The auction platform, CME Direct, is provided and operated by CME Benchmark Europe Ltd.

A participant’s input into the auction rounds are the aggregate of the participant’s own orders and those of the participant’s clients.

Participation in the auction is open to all silver market participants who meet the following conditions:

a) meet the Benchmark Participant criteria set out by the LBMA;

b) meet the Participation criteria set out by Thomson Reuters as the Administrator; and

c) meet the requirements set by CME Benchmark Europe Ltd to use the technology platform and participate in the auction market place.

The market participants are accredited by the LBMA; access to the auction platform is approved by CME Benchmark Europe Ltd


Physical Delivery Procedures

1. Delivery and Settlement Procedure
2. Submission of delivery intentions
3. Pay in and Pay out of Funds and Commodities
4, Premium/Discount, standard deduction & weight differential
5. Deliverable Lots
6. Odd Lot Treatment: Delivery

Physical Delivery documents