Sucden Financial is one of the first overseas companies to trade new Shanghai INE Copper
China remains an important region for the electronic trading industry. Accessing multi-asset instruments in China via London-based institutional firms may well be the future
Sucden Financial, the global multi-asset execution, clearing and liquidity provider, has become one of the first overseas companies to trade the new copper contract on the Shanghai International Energy Exchange (INE).
The new yuan traded contract allows foreign companies exposure to China’s copper market, the world’s largest producer and consumer of the metal and provides arbitrage opportunities against the LME (London Metal Exchange) global benchmark.
“We were delighted to be credited with some of the first trades on the new INE copper contract today, supported by Bands Financial. We are pleased to add INE to our list of liquidity points, ensuring our pricing and servicing of global metals clients remains competitive” said Marc Bailey, CEO of Sucden Financial.
This represents another example of Chinese contracts becoming available to an international audience, and with Sucden Financial’s raw materials and commodity trading background, liquidity and market availability on these contracts is available to all brokers with the expertise of a long established Western firm conducting their execution.
It is clear that whilst many OTC derivatives firms have moved away from directly approaching the Chinese FX market, multi-asset trading within the important Chinese trading environment is the next and more sustainable dimension, as brokers would partner with firms such as Sucden Financial to provide access to these instruments via its London-based institutional division.
China remains an important region as it is a vast global economy with a huge commodities base, and this method of trading may well be the de facto means of approaching the market from outside the great firewall in the future.