Spectron has launched a weekly report on speculative positions
in London Metal Exchange base metals contracts to fill a data
gap in the metals market.
Using a proprietary
algorithm based on publicly available LME data, London-based
Marex Spectron will now provide a weekly estimate of
speculative positioning in base metals contracts, building on
the position analysis it already provides to clients.
"The ability to have
an accurate assessment of what speculators are doing on a
regular basis is an important part of any risk management
process," Guy Wolf, the companys global head of market
analytics, said Feb. 11. "This fills an important information
gap on the exchange," Wolf said.
positioning was longest in zinc contracts at the end of last
week, with net longs accounting for about 20 percent of open
interest, data in Marex Spectrons inaugural report
Aluminum had the
shortest position, with shorts accounting for about 5 percent
of open interest. Positioning in all other metals was
marginally long, the data showed.
Marex Spectron has
been a longstanding critic of commitments of traders reports
tracking speculative and physical positions in U.S.
exchange-traded metals. In October, head of analytics Vicky
Sanders labeled such reports as "not fit for purpose,"
responding to a possible move by the LME to make such data
"For us, it has been
important to isolate and quantify the forces that act on
markets, whether through the same technological infrastructure
as high-frequency trading firms, or by quantitative models,
which neutralize the impact of passive long index money,"
Sanders wrote at the time in a guest piece for
AMM sister publication Metal Bulletin.
A version of this
article was first published in AMM sister publication Metal