Traders can settle SHFE copper positions with bonded material
Dec 08, 2010 | 11:57 AM
|
Traders will be able to use copper in specified bonded warehouses in China, where material can be stored duty free, to settle positions on the Shanghai Futures Exchange (SHFE), China's Ministry of Finance said.
The development, details of which are still scarce, will reduce the cost of physically settling short positions on the SHFE because traders will no longer have to pay a required 17-percent value-added tax, market participants said.
"The move will provide one more channel for settlement and will facilitate the arbitrage between the London Metal Exchange and the SHFE; this is a clear trend," a metals analyst at Shanghai Cifco Futures Co. Ltd. said.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute — no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Subscribe Now
Click Here
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.
Take a Free trial
Click Here