KLCE Announces Launch of Physically Delivered Zinc Futures
Zinc futures will be priced in U.S. dollars and will represent 25 metric tons of physical material – KLCE.org
KUALA LUMPUR, MALAYSIA, June 24, 2022 /EINPresswire.com/ — Kuala Lumpur Commodity Exchange (KLCE), a pioneering commodity exchange that provides exhaustive and convenient access to the Malaysian commodity markets, today announced the launch of physically delivered zinc futures contracts to begin trading next quarter, pending all relevant regulatory review periods.
These new zinc futures contracts will build on KLCE’s suite of physically and financially settled base metals products, and provide greater transparency and price discovery for market participants in Asia and around the globe. Zinc futures will be priced in U.S. dollars and will represent 25 metric tons of physical material. Other details will be revealed once all trading criteria are established and approved.
“Customers across the global physical commodities value chain rely on the accurate price discovery and risk transfer that KLCE’s commodity risk management tools provide”, said Kwok Yo, Senior Managing Director and Global Head of Commodities and Options Products, KLCE. “The introduction of the physical zinc futures contracts further strengthens our value proposition to industrial metals participants and enables them to take advantage of the integrity and efficiency of our warehousing practices.”
“We are pleased that KLCE has responded swiftly and decisively to industry feedback for a new and transparent Asian benchmark for zinc”, said the Head of Global Commodities of a top-tier Exchange. “We expect to improve accessibility to new opportunities and enhance the risk-management services that we offer for our commercial customers in Asia.”
KLCE’s new zinc futures contracts will be physically delivered in approved warehouses across Malaysia and China. The contracts will enable market participants to benefit from the reliability and proven integrity of the Exchange’s delivery process when they make and take delivery of special high-grade zinc of high-level purity.
These contracts will be available for electronically trading via the KLCE trading platform and will be subject to the rules of the Malaysian Trading Authorities.
About Kuala Lumpur Commodity Exchange (KLCE)
KLCE.org is a pioneering commodity exchange that provides exhaustive and convenient access to the Malaysian commodity markets. The Exchange’s markets offer clients trading opportunities across a diversified range of asset classes all combined with best-in-class post-trade services. KLCE is the main liquidity and price discovery center for Malaysian markets. KLCE hosts are trading in equities, bonds, derivatives, currencies, money market instruments and commodities. The Exchange is also a leader in driving the modernization of Malaysia’s financial markets infrastructure and promoting Kuala Lumpur as an international financial center.
Shazar Dhanazam
Kuala Lumpur Commodity Exchange (KLCE)
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