China’s QME Plans to Expand Commodity Offering on Spot Trading Platform

China’s Qianhai Mercantile Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (QME) is planning on expanding the range of commodities on its spot Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. According to an article from Reuters today, this could see the introduction of metals needed for electric vehicles.

Located in Shenzhen, QME is owned by Hong Kong Exchanges and Clearing (HKEX). The exchange provides HKEX with access to mainland China. Back on October 19, 2018 QME launched spot trading for alumina, the raw material for aluminum.

Matthew Chamberlain, the head of the HKEX-owned London Metal Exchange (LME) said this metal was added because there was not already a credible Chinese benchmark price for the ore.

On Wednesday, Chamberlain told the Reuters Global Commodities Summit that: “It’s clear in our discussions that there’s a big niche for discovering the price of alumina in China and that will extend to a whole bunch of other commodities.”

So, could that extend to metals used in the batteries of electric vehicles? According to Chamberlain: “We strongly believe that the idea of spot trading platforms could help across commodities, and why not battery metals? ... Nothing’s off the table.”

LME eyes launch of cash-settled lithium futures contracts in 2020

On the LME, on the other hand, it will use two price-reporting agencies to establish a blend of prices as the benchmark for the cash-settled alumina contract, which it expects to launch at the beginning of next year.

In addition to this, the LME - the world’s oldest and largest market for industrial metals - also plans to add a cash-settled futures contract for cobalt, an electric vehicle metal, also set to be launched in early 2019, Chamberlain said. Following this will be lithium, which is set for a possible launch in 2020, he added.

At present, the QME has placed its emphasis on trading bulk and upstream physical commodities. This, according to Chamberlain, will complement the LME’s focus on futures.