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1 Kilo Gold Futures Start Trading On Hong Kong Merc
As of 8 pm Eastern, the Comex' monopoly to the precious metals futures is over. As we reported previously, today, at 8 am local time, is when the Hong Kong Mercantile exchange would start trading the inaugural Asian precious metal futures contract: the 32 ounce /1 kilo/ gold futures. In the first 30 minutes of trading it appears to have been a subdued session, with just 22 contracts changing hands in the August 2011-June 2012 frame. How this trading will impact prices: nobody knows (yet). The spot price of gold has barely budged in the past hour. That said, now that PM futures fragmentation is starting, we expect that within 2 years we will have various deranged HFT algos trading tonnes of gold, quote stuffing globally, and otherwise creating one of the most volatile trading environments imaginable.
And since we know you are asking: the margin schedule for the HKMerx will be kept and listed by the same LCH.Clearnet that hikes and lowers Irish and Portuguese bond margins by 10% on an almost weekly basis. Let see now how the Comex hikes its gold margins with impunity if it has competition that keeps margins "artificially" low, and provides disgruntled Comex clients with an alternative venue that accepts far less cash collateral to trade.
It's called competition Chicago: get used to it.
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So, what's the good news? *looks around*
EDIT: Okay, the article has now been edited. Competition, okay. In the previous article, all the usual big players were onboard, including JPM. So, my naive question is this: Besides of margin handling, what will stop those players doing what they did and still do on comex?
When will they get silver trading started next?
as soon as wen jibao has gotten his "consensual" BJ from Blythe...
I heard BM is barely up to what DSK demands.
lol
Wait?!? A kilogram of gold? Isn't that, like, a lot?
32.15oz, roughly 1/3 of a 100oz bar, or 1/12 of a std delivery bar. Opens the delivery door to a lot more players both physically and economically.
Don't know why someone would junk you, seems like a damn good question.
You must be this tall to ride...
Ty- any chance you have the BBG symbol for said contract?
Try HKG
Got a great piece lined up. I know i am not a longtime member, but how can i submit an article for reviewing? Thanks in advance
Post it here, first. This is fight club after all. Let some get their licks in and see if you get up.
By The Feds Connection
Dominique Strauss-Kahn is effectively finished as a political force, even if he doesn’t draw a guilty verdict in New York, where a 32-year-old maid says she was attacked and forced to perform oral sex on him.
He’s finished as IMF chief and his candidacy against Sarkozy also looks to be in ruins.
The IMF chief certainly has enemies in high places who will be cheering his predicament. He had recently broke-free from the "party line" and was changing the direction of the IMF. His road to Damascus conversion was championed by progressive economist Joesph Stiglitz in a recent article titled "The IMF's Switch in Time". Here's an excerpt:
So, Strauss-Kahn was trying to move the bank in a more positive direction, a direction that didn't require that countries leave their economies open to the ravages of foreign capital that moves in swiftly--pushing up prices and creating bubbles--and departs just as fast, leaving behind the scourge of high unemployment, plunging demand, hobbled industries, and deep recession.
Strauss-Kahn had set out on a "kinder and gentler" path, one that would not force foreign leaders to privatize their state-owned industries or crush their labor unions. Naturally, his actions were not warmly received by the bankers and corporatists who look to the IMF to provide legitimacy to their ongoing plunder of the rest of the world. These are the people who think that the current policies are "just fine" because they produce the results they're looking for, which is bigger profits for themselves and deeper poverty for everyone else.
This is an excerpt of the first alinea's, deleted title for the moment.
This seems to be posted elsewhere. Is this your original article that has been picked up in many places?
http://mosquitocloud.net/bankers-cheer-as-dks-faces-sexual-assault-charges/
http://www.greanvillepost.com/2011/05/17/bankers-cheer-as-imf-head-faces-sexual-assault-charges/
http://www.zimbio.com/Dominique+Strauss-Kahn/articles/8ikgDEvci9B/Bankers+Cheer+IMF+Head+Faces+Sexual+Assault
http://www.eurasiareview.com/bankers-cheer-as-imf-head-faces-sexual-assault-charges-oped-16052011/
http://ed-strong.com/2011/05/17/strauss-kahn-brought-down-too-left-for-the-imf/
Busted.
Ain't Google a bitch?
LOL
Bing!
http://www.bing.com/
It never struck you they might be the same person?
People use different handles on different sites sometimes. Sure I don't, but that is because I am stupid and let people cyberstalk me for some reason.
Yes it did strike me. That was why I offered the courtesy of asking if s/he was the original author, a Mike Whitney in fact. As opposed to accusing the person of hijacking someone else's work.
lol, I read the first reply and that somehow colored my perception of your post.
Sorry about that.
It is, also on http://www.counterpunch.com/whitney05162011.html which is my primary platform.
I have taken an interest in zerohedge recently as i have received alot of e-mails suggesting i should visit this website. Tyler might be interested to receive a copy aswell before it is published online.
Mike
Way to get up swingin', Mike.
Welcome Mr. Whitney, I have read many of your articles from Counter Punch over the last year and a half and very much enjoyed them. It would seem we are like minded. Out of curiosity how long have you been a fight club spectator?
For the ZH Crew
From your April 11 2011 article about Bernanke strikes again.
Mike Whitney QE2 was never intended to lower unemployment. Bernanke has been pulling the wool over our eyes from the get go. The real goal was to buoy stocks with the hope that inflated asset prices would increase the "wealth effect" and trigger another credit expansion. But that hasn't happened because consumers are deleveraging and are still up to their eyeballs in debt. So, QE2 has just turned out to be more corporate welfare for Wall Street; another handout to the folks who blew up the financial system.
The question is whether DSK was pushing a more radical change at the IMF in order to further his chances of beating Sarkozy? Although I support any plans to reform the IMF, I do doubt the sincerity of DSK - does this matter?
Odds are we will never know about his sincerity or motivation. I was listening on BBC that he is housed in an empty wing and on suicide watch.
tl dr
jk! See? Its fun!
"Naturally, his actions were not warmly received by the bankers and corporatists who... plunder of the rest of the world. These are the people who think that the current policies are "just fine"
Naturally, certain people like to keep certain things a certain way... or else.
Well, at least you self identified.
I, for one, look forward to the exchange of philosophy & ideas to be judged on the merits.
I hope to see you as a contributor, welcome to Fight Club ;-)
Good stuff! Here is your first junk
IXCQ1 is BBG for august contract ...
Fuck Um Up Bear!!!
game on
Now all they need is a Max Chong pushing them to buy gold to crash the fed.
Interesting to see these two ponzi trade with one another.
Regardless... bearish for $ hegemony.
Poor Fed lovers. And things were going so well with the 3% hollywood $ rally and all...
The good news is that maybe this contract will be manipulated less (or not at all) and gold (with increasing volatility) will become a more suitable hedge against US Treasury Bonds.
Besides of margins, how much manipulation can happen would depend on the rules - are they much different to comex?
Military doctrine. During war or the critical time leading up to (or winding down from a losing) war, if you can't control something, destroy it. Since PMs are the arch enemy to fiat and because they are losing control of it, expect them to try everything they can to destroy it's reputation as a wealth preservation refuge of last resort. Do that by making it extremely volatile, driving people away from that terribly unreliable and frighteningly unpredictable Gold and Silver.
The process started a while back with Silver.
It even works with watermelons,
http://news.yahoo.com/s/ap/20110518/ap_on_fe_st/as_china_exploding_water...
precious melons
The always fatal flaw of control freaks of whatever stripe is hubris.
The pathetic delusion that everything, everywhere can always be "controlled".
That delusion has spelt the demise of every empire, fiat currency and army the world has ever known.
Asia loves PM!
I like it.
We do too.
CD's assertion does not apply to physical as during volatility, the smart ones will BTFD. That will accentuate the uptrend as more physical goes out of circulation
All I am asserting is that they will try to destroy Gold and Silver's reputation. I did not say they would succeed. I said....
Regardless of success or failure, volatility will scare off some people, thus buying the fiat Ponzi a bit more time.
When facing total annihilation and complete loss, the idea of only suffering a partial loss, even if it is delusional and it means even more people will suffer because the collapse will be drawn out, looks very appealing.
We are, after all, dealing with sociopaths here.
CD,
Not to mention the Peak Troll activity we've seen here and elsewhere on the PM's lately. It is nearly all fear based.
I know I've never seen anything close to this in the last 12-15 years I've been following gold and silver.
There's some serious "Masters of the Universe" panic going on. Fire in the COMEX.
It is also interesting to note, as others have here recently as well, that the entire focus of the anti-PM, pro-bankster trolls used to be gold, but has dramatically and virtually completed shifted to silver as of late. Methinks that somebody is seriously running scared.
In other news, it appears that MethMan has taken a short-term sabbatical from ZH, in order to finish up some graduate courses at Troll U.
The additional $1-$2 swing (down) in silver prices may have bought them a few weeks.
It may actually speed things up though since the artificial low brings in the volume buyers to scoop things up.
My local coin dealer, who I buy gold and silver from just has a few 100 oz englehards, and a funny old box of "assorted 1 oz rounds": Buffalos and things like USS Arizona commemorative coins that look like they've seen action.
He's seriously cleared out down to just the junk drawer.
Oh that and I got a tiffany sugar pot (at melt, sterling), and almost bought a silver serving tray with Condoleeza Rices name on it (as well as a bunch of other famous people).
Some more from Casey's on silver supplies.
http://goldandsilverlinings.com/?p=1004
What people call "egoism" always has first been concerned with others losing, and secondly with oneself gaining. Phrased another way, it is more about others having less, than it is about oneself gaining. It's not restricted to economics but a generic psychological thing. People with this mindset will prefer oneself gaining little and the other losing little, over both gaining much - heck, they will even prefer oneself losing little and the other losing much, over an actual gain. Their illusion of winning mainly comes from comparing their resulting situation to the opponent, instead of comparing actual gains. In the big picture (both time and space), what people call "egoism" really is much closer to "sadism", rather than "only being concerned with one's own gain".
@ CD
Sorry,
What I meant was that they can easily discourage and drive away paper players on margin, but it's more difficult to discourage physical buyers who can use a bear raid as an opportunity to buy more coins or bars.
Cheers
Oops.
The plot thickens:
BREAKING! MORE Verification! Nordyke Numbers Expose Obama BC Fraud!
http://www.youtube.com/watch?v=AmDZ0xly1OU&feature=feedlik
It might sound wired but here it is:
What about this: The Kenian story is a hoax and he is an illegitimate son of a NWO high profile (of a certain religion) and a black lady and was given to adoption to the durnham's dunhum's whatever is spelled which they also were of a certain religion
Look at his political carier: he jumped from the basment to senator and after to president and was living in a million dollar home in high profile residential area with a lot of peoples of a certain religion, when he was a community organiser. WTF
Dude - try hitting the spell check key before posting
not religion; ethnicity. Most of these people do not go to synagogue nor follow any of the tenets
hong kong oil exchange NymEXT? buh bye wti shenanigans
Can we all just agree to stop sayin shenanigans please, it really detracts from the discussion.
I call shenanigans on you augie. ;)
Is there something about the word "shenanigans" you don't understand?
Are there too many syllables?
Next person to say shinanigans gets pistol-whipped.
There may be some guys that would like that and you may have to deliver. Be careful promising things
Hey Meth_Man what's the name of that restaurant you like with all the goofy shit on the walls and the mozzarella sticks?
OT:
Watermelons in eastern China’s Jiangsu province burst in the fields, possibly because of a growth-promoting chemical and sudden rainfall after a drought, the country’s official Xinhua News Agency reported yesterday.
More than 700 mu (47 hectares or 115 acres) of melons in the Danyang city area were ruined, Xinhua said. Wang Liangju, a professor at Nanjing Agricultural University, said the accelerant, forchlorfenuron, may have caused some bursting, even if most farmers said they hadn’t used it, according to the news service. Wang said heavy rainfall may have caused the rest of the bursts.
“I have never seen this phenomenon,” said Bob Morrissey, executive director of the U.S. National Watermelon Association in Lakeland, Florida. “Watermelons do not burst only from rainfall.”
Morrissey said rain only causes mildew and cosmetic cracks inside melons. The problem was likely caused by forchlorfenuron, used in the U.S. only on grapes and kiwifruit, he said.
Radioactivity bitches.
Is that why Californian grapes taste so bland? They sell them in the supermarket over here but we only bought them once.
I don't eat anything from china anymore. Most of the tilapia is from there too. They are the most corrupt lying poisoning bastards on the planet. They even poison baby milk and toothpaste. Ask the hundred or so people in south america who died from brushing their teeth. Oh...I guess you can't ask them.
Where does the physical change hands?
Until August HK is irrelevant for that.
The mining output is around 8 metric tons a trading day (~2000 tons / ~250 trading days.)
Somewhere that gold has to be delivered. The Comex delivery numbers are way to small; the LBMA numbers way too big.
Which exchange or smoky back-room remains?
Gold is DOWN? WTF?
All commodities are down, though you'll notice gold is down considerably less than all others.
BTFD
Actually, there today, and yesterday have been..... well, decide for yourself what it is... just zoom into those almost vertical lines downwards. Hate to say it, but don't expect gold to be safe from what they did to silver.
Some interesting comments from Richard Russell on patience being needed for the next gold bull run, we could be in for a 20 week consolidation.
Background:
http://goldandsilverlinings.com/?p=1016
So 10 Senators visit China to "discuss crackdowns" on Chinese dissidents in late April.
Meanwhile....
China states its intention to reduce dollar denominated holdings, presumably because FED policies were causing the dollar-pegged-yuan to inflate. China is also actively encouraging its citizens to invest in physical silver and gold. A little after the meeting, Hong Kong announces it will open its own gold futures exchange. This isn't suspicious at all, and I highly doubt that an agreement was made for the Chinese to keep rapidly deteriorating dollar assets on hand in exchange for an agreement to be involved in the paper supression scam of the gold and silver future prices. Indeed, the Chinese will be able to launder dollars into the paper market, help supress the prices for its central bank and citizens, and takes the heat off of Comex.
Obviously this is pure speculation, but if you were the banksters, this would be a good way to buy some more time to abscond with even more of the USA's wealth before the ponzi collapses.
I get it. Suckers get to buy bogus China IPO's and the cash goes straight to gold, no banksters... Perfect.
Is that line not sloping down to the right?
Chinkpleebs now have a venue to sell?
The HK Mercantile Exchange launched its first 1-kilogram gold futures contracts quoted in U.S. dollars with physical delivery (settlement) in Hong Kong. The price will be based on the troy ounce price in US dollar. In addition, the official trading hours start from 8AM till 11PM Hong Kong Time during HKME business days. This business period will synchronize with the Tokyo Commodity Exchange (TOCOM) opening hour, and will cover the London Bullion Market Association (LBMA) morning fix and afternoon fix and the opening hours of the New York Mercantile Exchange (COMEX).
It further disclosed that the Mercantile Exchange plans to launch sometime in September/October this year, a gold futures contract with prices quoted in RMB but settlement denominated in US dollar.
Source: http://finance.ifeng.com/gold/jskx/20110518/4036343.shtml
In the first 30 minutes of trading it appears to have been a subdued session, with just 22 contracts changing hands in the August 2011-June 2012 frame.
Source: http://economyurls.com/180511/1-kilo-gold-futures-start-trading-on-hong-...
Is a contract for 1 or 100 KGs?
Tyler stated 1kg / 32 oz / 1000g per contract.
The HK Mercantile Exchange website:
http://www.hkmerc.com/en/index.html
The gold trasaction graph is on this first page
Code for 1-kg gold futures contract: HKG
(Tyler got it right for this one)
At least USDJPY hit unchanged. Took my case of beer.
Bedtime, bitchez!
Edit: and there it falls again. BTFD.
Crap, staying up for 81.
Tunes for Fx watchers:
http://www.youtube.com/watch?v=ZfVJSLC3lO8
we'll see if they're the same group of scumbags as over here. Being Asian is a good thing.....but has this particular group been allowed into "The Club" to rape and fleece gold traders? I hope these people are at least more honest than the bunch over here. Time will tell soon enough......
I feel lucky tonite:
http://www.youtube.com/watch?v=QM7LR46zrQU
This is really great news.
For banks.
Who now have another data point to use to front run the US retail sheep in GLD.
They will be the first to short when they see Asian demand start declining.
Sold to you!
Chinese and Indian demand will decline later this year as their governments continue to tighten... and now the banks will see it even sooner than they would have before.
Goodbye Gold, Goodbye Silver.
See you at $20 and $1000.
Goodbye WFC, BAC.
http://www.youtube.com/watch?v=FhNrrrCCTdA
http://www.youtube.com/watch?v=cETrNUB9Aog
http://trololololololololololo.com/
JohnG, you need a Fx account.
http://www.youtube.com/watch?v=9F9q_k5TWqo
lol, now you are telling us the banks are conspiring against us?
I thought the banks were totally legit.
You change positions more often that a politician under close examination.
Not the banks.
http://www.youtube.com/watch?v=Uger0WtSUso&NR=1
I sure hope it is 20 dollar silver and 1000 dollar gold.
I reiterate my topcall on everything, even topcalling.
Well except the dollar and treasurys. They are still yet to top.
Troll,
http://www.youtube.com/watch?v=6rirMIpU308&feature=related
Blonde redhead is the best you could come up with?
http://www.youtube.com/watch?v=yvT_pzN2UHA
I'm in the mood for some of your luv...
that's better....you ought to come to Arkansas some time in the delta and check out the king biscuit blues festival in Helena.
very nice, love the south, and blues. see you in oct.
"and now the banks will see it even sooner than they would have before". by MythMan
so...client order flow, stops etc not enough already to work it out...they can sit up nights and watch the HKMEx.
You are an idiot.
Doesn't matter how many exchanges compete-- without the added regulatory buffer of making sure that no one entity/speculator can influence price action by taking an unlimited amount of contracts, then we're a long way from free markets that are meant for price discovery-- sometimes I think it's all pie in the sky idealism.
Precisely.
it is idealism, no such things as 'free' markets.
Wait, I thought "buying gold was buy and hold."
http://www.youtube.com/watch?v=GzVM6Q4YwAA&feature=related
Buy USDJPY at 81.
http://www.youtube.com/watch?v=QaG2Acg8n60
Shankapotomus
http://www.youtube.com/watch?v=H9m3GyDh6M8
You boozin' tonight, or somethin'?
His swing looks like an unfolding lawn chair.
Duh.
-Big hitter the Lama... long.
-That ball was slowin' down the moment he hit it.
doesn't tocom have gold contracts?
http://www.tocom.or.jp/guide/youkou/gold/index.html
Take it upt
the ass,troll....
Are your ears ringing,MethMan...?
Man alive..... all this despair and negativity about precious metals. On zero hedge of all places!
Where is all your zeal and energy? Mathman only has 5 junks? WHAT IS WRONG WITH YOU PEOPLE!
We might just be due for a bounce about now. The despair, cynicism, surrender....it's all getting to be too much for me. And not even a gold, bitchez or BTFD among the lot of you.
Can I get a BTFD, brother? Don't leave me hanging.
An interesting observation... Could be a sign to triple leverage to the upside!!!
And I own EVERY dip since $9, bitchez.
I bought today.
Take it upt
the ass,troll....
Are your ears ringing,MethMan...?
that's better. I was getting worried.
Worry not, dear child:
http://www.youtube.com/watch?v=whXeb7Ohfkk
Save us Chicoms!!!
ha ha!
from their site:
"
HKMEx has developed cutting-edge infrastructure to deliver leadership in speed, reliability and choice to market participants seeking the optimal connectivity solution. The Exchange works with leading carriers around the world to ensure connectivity remains simple, robust and cost effective no matter where a market participant is located. Pearl® supports the industry-standard FIX 4.4 protocol, as well as EMAPI, a proprietary API which provides speed and efficiency advantages. Market participants can connect to Pearl® via our Managed Global Network or choose to collocate their trading applications in the HKMEx data centre facilities.
"
emphasis added bitchez!
LMFAO!
The chinese will make the crimex look like a bunch of amateurs.
NOW ALL YOUR TRADING DATA ARE BELONG TO US!
or how about
In china you don't trade the HKMEx. The HkMEx trade you.
+1
GS in trouble ... frontrunning on a donkey
For those of you confused about PMs:
http://www.youtube.com/watch?v=qkmvwCpcZlM&feature=related
Now monopoly is a duopoly. Huh, that sense of choice is familiar... (Rep. vs Dem). two sides of the same coin.
So, what is this new finagled market pricing gold at?
We want updates, or at least a reliable link.
http://www.youtube.com/watch?v=X3iFhLdWjqc
I should note that APMEX has lowered their premiums on ASEs. The cheapest form ("random" year) has dropped 40 cents per oz. The premiums remain astronomical, but slightly less so than recently.
Also note that since I noticed this this afternoon, the supply has dropped from about 9200 to about 7200. The 2011's are cheaper as well, and they have more than 9999 of those.
Seems like they managed to get SOMEONE to sell. Monster boxes remain astronomical, and other silver products are holding at their high premiums, though they appear to have gotten significant new supply in many categories from mints (NOT used silver, which is bare bones).
Take that information for what you will.
I take it as nonsense.
Local dealer was selling 100oz bars for 3630 on saturday
Oh look, the Golgothan has something to say. Best clear the area, folks.
A few things.
First: Yeah? Prove it. Your ass has been caught lying and telling half truths a LOT lately--anything to pursue your dumbshit vendetta.
Second: One instance of anecdotal evidence doesn't refute all other prices everywhere.
Third: 100 oz products have had the second slowest rise in premiums, but premiums are MUCH higher than they were in April, or any time before that after the 2008 episode.
Fourth: all the large products I have found cheaply are brand new--no reselling of bars is happening at retail.
Fifth: You are super biased. You probably didn't ask how many people were buying vs selling, or you purposefully excluded that data.
Sixth: What about their other products, huh? All gone around here. No 100 oz bars either. Just a few scratch and dents and some 90% and 40% junk, and the stuff posted for auction, which has greatly increased in price.
Wow! Check that USDJPY drop!
Go baby!
http://www.youtube.com/watch?v=VLnWf1sQkjY
Got my 81
http://www.youtube.com/watch?v=Y2lXKZ9Zksg&NR=1
Yea...
Hong Kong?
...this is where empty cities are built right?
....a country where you blow up buildings just to rebuild them?
I am pro free market, so we will see how this works out.
It will be an interesting study.
YOu need to check out the post from viewfromunderneath below. I missed the importance of it the first time.
Have no idea where USDJPY goes from here.
Only in it for the beer.
Made next month's requirements.
http://www.youtube.com/watch?v=WANNqr-vcx0
Click below to read if DSK was set up--as he claimed he would be--in response to his outspoken policies against the dollar and Fed:
http://thesilvergoldhedge.blogspot.com/2011/05/sdk-had-dollar-banksers-a...
Couple of more futures exchanges and things might not be so easy for the Comex "market makers."
HOKOMEX rules.
It won't be long before Comex is used in the same vein as Ponzi.
regards
If the new exchange does Not raise margin requirements in the face of increased volatility (and volume from marginally capitalized players), they may find they Have to, to keep from having to cover pay outs from busted players. There's a Lot of Hard vacuum under commodities right now.
COMEX margin hikes should be great news for all gold and silver bulls, considering that they claim gigantic short positions in precious metals. Margin hikes enforce short covering = higher prices. What's not to like?
Its no hardship for the shorts.
I'm surprised no one has addressed the fact that they will be offering these contracts priced in yuan. Am I making too much of this?
Follow the link below to find out why the Hong Kong Mercantile Exchange must be seen and understood as an extension of the Chinese government and its long term goals, and consequently, why it will not help create an equitable or realistic price discovery mechanism for gold. Not for now anyway.
http://thesilvergoldhedge.blogspot.com/2011/05/why-hong-kong-exchange-will-disappoint.html