Latest news with #MarketRegulation
Argaam
6 days ago
- Business
- Argaam
Tadawul cancels outstanding orders amid tick size changes
The Saudi Exchange (Tadawul) canceled today, June 26, all outstanding orders after market close to prepare for upcoming changes to price tick size bands on the Main Market (TASI) and Nomu-Parallel Market.
Reuters
25-06-2025
- Business
- Reuters
LME's new position rules reflect a changed metals landscape
LONDON, June 25 (Reuters) - The London Metal Exchange's (LME) move to tighten the regulatory screws on long position holders comes at a time of turmoil in both aluminium and copper contracts. Traders have been scaling up bets even as LME warehouse inventory has been depleting, generating acute stress in the exchange's unique date structure. But it's no coincidence that it's these two contracts that have been most roiled. Both copper and aluminium physical markets have been massively distorted by tariffs and sanctions respectively. Having just emerged from its 2022 nickel debacle, the LME is understandably keen to avoid a new crisis and since it can't do much about either tariffs or sanctions, managing the consequences is its best bet. The danger as ever with this 148-year old market is that tweaking such a complex ecosystem causes unforeseen consequences. This week's upheaval in the copper market bears all the hallmarks of a mega clash of positions on the cash date. The "tom-next" spread, which is an overnight position roll, flared out to a backwardation of $69 per metric ton on Monday. That helped inflate the backwardation across the cash-to-three-months period to $397 per ton, the widest since 2021. One entity had bulked up on cash positions to the tune of 80-90% of available stocks coming into the week and whoever it is will be subject to the exchange's automatic lending rules. These are intended to prevent anyone cornering the market with positions so dominant they distort prices. The new rules introduced on Friday by the LME's special committee extend those lending caps beyond the cash date through the next monthly prompt. They are, for now at least, temporary. This follows the recent squeeze in the aluminium market, which was focused not on the LME's rolling cash date but on the June monthly prompt date. But it's clearly not the only mega long position that has given LME senior management cause for concern. There have been "a number of occasions" of significant positions in nearby prompt dates and the special committee has "at times" directed holders to reduce them "relative to prevailing stock levels," the LME said. And there's the rub. There's not much stock of either copper or aluminium. LME copper stocks have shrunk by 65% to 94,675 tons since the start of 2025 with the amount of available tonnage at a two-year low of 54,525 tons. This is not due to diminished global availability but rather reflects a massive redistribution of global inventory. Ever since U.S. President Donald Trump launched a so-called Section 232 national security investigation into U.S. copper imports in February, physical metal has been flowing to the United States to capitalise on the premium commanded by the CME's U.S. customs-cleared copper contract over the LME's international product. U.S. imports of refined copper jumped to more than 200,000 tons in April, the highest monthly arrival rate this decade. LME warehouses have been stripped to feed this physical tariff trade. CME stocks, on the other hand, have more than doubled this year to 184,464 tons, the highest they've been since August 2018. While the prospect of U.S. tariffs has upended global copper flows, those of aluminium have been fractured by sanctions on Russian metal. When the United States and Britain announced sanctions on Russian producer Rusal in April 2024, the LME suspended all deliveries of Russian aluminium produced after that date. Russian metal already in the LME system could continue trading but clearly wasn't as desirable as other brands. There have been sporadic dog-fights over available non-Russian stocks ever since, each involving large positions and spread turbulence. But the net result is that LME aluminium stocks are now at their lowest point since October 2022. Most of the stock awaiting physical load-out has departed and most of what remains is Russian metal. There is no sign of any imminent replenishment. LME off-warrant stocks, which often rise when visible inventory falls as metal is re-directed to cheaper warehouse deals, are also down on the start of the year. There have been no significant fresh deliveries onto LME warrant since March. The Russian liquidity tap has been dry since last year and holders of other brands are likely reluctant to lose them in the LME clearing. In the case of both copper and aluminium, the efficiency of the LME's global delivery function relies on the existence of a globally fluid physical supply chain that simply isn't there right now. The LME's lending guidance has always faced criticism for favouring short position holders over longs. Extending the lending restrictions on dominant long positions across the front month of the curve naturally skews the regulatory focus further. It's worth remembering that it was a dominant short not a dominant long that caused the 2022 nickel blow-out. But given the growing mismatch between position size and available inventory, the LME is doubling down on precedence to try and avert another crisis. The problem is that smoothing out what the LME deems distortions in the exchange's price-setting function may reduce the financial incentive for metal to be delivered to what is supposed to be the market of last resort. Assuming, of course, it's neither Russian aluminium nor copper on its way to the United States. The opinions expressed here are those of the author, a columnist for Reuters
Bloomberg
16-06-2025
- Business
- Bloomberg
China Approval for Bunge's Viterra Deal Comes With Crop Demands
China has confirmed its approval of Bunge Global SA's takeover of rival Viterra, but on Monday outlined several conditions, including the continued supply of key crops to the Asian nation at a 'fair' price. The green light from Beijing, announced by Bunge late last week, was the last major hurdle to the conclusion of the $8.2 billion deal. Still, a statement from the country's State Administration for Market Regulation outlined the large share of soybean, barley and rapeseed trade with one of the world's top buyers that the combined company will control, which risks limiting competition.
Yahoo
19-03-2025
- Business
- Yahoo
Farm-to-fork watchdog could tackle ‘unfairnesses' which farmers face, says MP
A farm-to-fork food watchdog could help growers make more money when retailers sell their produce, an MP has suggested. Alistair Carmichael has said 'behemoth' supermarkets should face a tougher regulator in a bid to ease 'unfairnesses' in the supply chain without passing costs onto shoppers. On Wednesday, he will seek to table his proposed Food Products (Market Regulation and Public Procurement) Bill, which aims to lay the groundwork for a new watchdog covering farmers, suppliers and shops. National Farmers' Union (NFU) president Tom Bradshaw has called for a 'trading environment that remains competitive and innovative' and said he 'fully supports' the Bill being tabled. Mr Carmichael, the Commons Environment, Food and Rural Affairs Committee chairman, described the existing framework as 'a bit of regulation at one end and a bit of regulation at the other and no wiring between the two and nothing actually even to join together the two bits of regulation'. He told the PA news agency: 'Experience has been that we really need to have something that goes from the farm gate to the supermarket shelf. 'And there are lots of different unfairnesses that have been allowed to be hardwired into the system.' The Liberal Democrat MP for Orkney and Shetland added: 'It has to look at the market as a whole because it's a very unusual market. 'You've got tens of thousands, maybe hundreds of thousands, of primary producers and what? 'Six, 10 behemoth supermarkets at the top and all sorts of bits and pieces in between?' Supermarkets backtrack on past commitments without a reason and say 'we don't want your product anymore', Mr Carmichael claimed, adding: 'That farmer or processor will probably have gone to some expense to market and batch and package their product in such a way that the supermarket demands but they'll pull the rug out from underneath you.' He also said that if supermarkets decide to cut milk prices 'everybody then passes that on down the line to the family farmer, and the farmer essentially at the end of the day is left having to shrug his shoulders and just take the hit'. The Groceries Supply Code of Practice (GSCOP) promotes 'fair dealing' and discourages supermarkets from demanding changes to their supply chains without 'reasonable notice'. Mr Carmichael said farmers 'take it' because complaining to the Groceries Code Adjudicator, who is supposed to enforce the code, could mean they struggle to 'get back in' with the supermarkets and suffer 'bad long-term consequences'. A new regulator could have built-in protections, including the power and resources to proactively investigate suspected breaches without the need for farmers to complain. Asked whether shoppers will face higher prices amid efforts to pass a bigger share of sales to farmers, Mr Carmichael said: 'I don't think the people who can afford to be impacted by this are the consumers. 'I think that the people who are doing rather nicely out of this are the supermarkets and indeed some of the processors and distributors as well. 'So, if you're going to find a way of improving the lot of the farmer, you have to do it in a way that doesn't actually work to the detriment of the consumer, and that's why you've got to have a regulator that is big enough and has sufficient resource to be taken seriously by supermarkets.' Mr Carmichael criticised 'tacit consensus amongst policymakers that we didn't need farmers, we could import all our food', calling instead for a strengthened domestic industry following international shocks such as the outbreak of war in Ukraine followed by US president Donald Trump 'playing fast and loose with trade'. Mr Bradshaw called for a 'policy which doesn't undermine' farmers, adding: 'Strengthening farmers' position means making our food system more resilient and provides a trading environment that remains competitive and innovative.' Andrew Opie, director of food and sustainability at the British Retail Consortium (BRC), said: 'We support appropriate regulation to strengthen the resilience of UK food producers. 'The Groceries Code Adjudicator has been operating for more than a decade, overseeing a legal code between retailers and their suppliers, and retailers have developed strong internal processes to ensure compliance. 'Given the success of this model, the BRC has been lobbying for more intervention for suppliers, such as farmers, further up the supply chain who are not currently covered by GSCOP and would need different regulation and support to help them. 'We believe that is best delivered by the Agricultural Adjudicator, which is already active in the dairy chain and could be replicated across all farming supply chains.'
The Independent
19-03-2025
- Business
- The Independent
Farm-to-fork watchdog could tackle ‘unfairnesses' which farmers face, says MP
A farm-to-fork food watchdog could help growers make more money when retailers sell their produce, an MP has suggested. Alistair Carmichael has said 'behemoth' supermarkets should face a tougher regulator in a bid to ease 'unfairnesses' in the supply chain without passing costs onto shoppers. On Wednesday, he will seek to table his proposed Food Products (Market Regulation and Public Procurement) Bill, which aims to lay the groundwork for a new watchdog covering farmers, suppliers and shops. National Farmers' Union (NFU) president Tom Bradshaw has called for a 'trading environment that remains competitive and innovative' and said he 'fully supports' the Bill being tabled. Mr Carmichael, the Commons Environment, Food and Rural Affairs Committee chairman, described the existing framework as 'a bit of regulation at one end and a bit of regulation at the other and no wiring between the two and nothing actually even to join together the two bits of regulation'. He told the PA news agency: 'Experience has been that we really need to have something that goes from the farm gate to the supermarket shelf. 'And there are lots of different unfairnesses that have been allowed to be hardwired into the system.' The Liberal Democrat MP for Orkney and Shetland added: 'It has to look at the market as a whole because it's a very unusual market. 'You've got tens of thousands, maybe hundreds of thousands, of primary producers and what? 'Six, 10 behemoth supermarkets at the top and all sorts of bits and pieces in between?' Supermarkets backtrack on past commitments without a reason and say 'we don't want your product anymore', Mr Carmichael claimed, adding: 'That farmer or processor will probably have gone to some expense to market and batch and package their product in such a way that the supermarket demands but they'll pull the rug out from underneath you.' He also said that if supermarkets decide to cut milk prices 'everybody then passes that on down the line to the family farmer, and the farmer essentially at the end of the day is left having to shrug his shoulders and just take the hit'. The Groceries Supply Code of Practice (GSCOP) promotes 'fair dealing' and discourages supermarkets from demanding changes to their supply chains without 'reasonable notice'. Mr Carmichael said farmers 'take it' because complaining to the Groceries Code Adjudicator, who is supposed to enforce the code, could mean they struggle to 'get back in' with the supermarkets and suffer 'bad long-term consequences'. A new regulator could have built-in protections, including the power and resources to proactively investigate suspected breaches without the need for farmers to complain. Asked whether shoppers will face higher prices amid efforts to pass a bigger share of sales to farmers, Mr Carmichael said: 'I don't think the people who can afford to be impacted by this are the consumers. 'I think that the people who are doing rather nicely out of this are the supermarkets and indeed some of the processors and distributors as well. 'So, if you're going to find a way of improving the lot of the farmer, you have to do it in a way that doesn't actually work to the detriment of the consumer, and that's why you've got to have a regulator that is big enough and has sufficient resource to be taken seriously by supermarkets.' Mr Carmichael criticised 'tacit consensus amongst policymakers that we didn't need farmers, we could import all our food', calling instead for a strengthened domestic industry following international shocks such as the outbreak of war in Ukraine followed by US president Donald Trump 'playing fast and loose with trade'. Mr Bradshaw called for a 'policy which doesn't undermine' farmers, adding: 'Strengthening farmers' position means making our food system more resilient and provides a trading environment that remains competitive and innovative.' Andrew Opie, director of food and sustainability at the British Retail Consortium (BRC), said: 'We support appropriate regulation to strengthen the resilience of UK food producers. 'The Groceries Code Adjudicator has been operating for more than a decade, overseeing a legal code between retailers and their suppliers, and retailers have developed strong internal processes to ensure compliance. 'Given the success of this model, the BRC has been lobbying for more intervention for suppliers, such as farmers, further up the supply chain who are not currently covered by GSCOP and would need different regulation and support to help them. 'We believe that is best delivered by the Agricultural Adjudicator, which is already active in the dairy chain and could be replicated across all farming supply chains.'
