Your Offshore Guide
Offshore Guide
Gold Trading HK
THE GOLD FUTURES MARKET
Pursuing a policy to develop Hong Kong as a regional financial centre, the Hong Kong Government enacted the Commodities Trading Ordinance in 1976. The Hong Kong Commodity Exchange (HKCE) was incorporated in 1977 following the liberalization of commodity futures trading. Raw sugar, raw cotton and soybeans futures were traded during the first phase of the operation.
In 1980, the scope of activities of HKCE was widened to include gold futures trading. Business is conducted under an open outcry system. Each contract covers 100 troy ounces and the original margin required for each contract is US$1,500. Prices are quoted in US dollars per troy ounce and price changes are registered in multiples of US$10 per contract. If the price movement exceeds US$40 per troy ounce above or below the settlement price established at the close of the preceding market day, trading will be suspended for 30 minutes for special margin calls. Tliereafter, trading will resume without limits until the close of the day.
In fulfilment of every contract, the seller must deliver to the buyer 100 troy ounces (5% more or less) of Good Delivery gold bars of 995 fine or better. The weight of each bar can be 100 troy ounces, 50 troy ounces or one kilo. Delivery can be made at the seller's option during any business day from the 23rd day to the last working day of the month specified in the contract.
HKCE changed its name to Hong Kong Futures Exchange in 1985 but the performance of gold futures trading has been below expectation. On the other hand, traders and speculators are keen to trade on the New York Mercantile Exchange COMEX Division in New York and the volume of business conducted by night operators in Hong Kong has been fairly substantial. This is primarily due to greater price activity during New York market hours.
Pursuing a policy to develop Hong Kong as a regional financial centre, the Hong Kong Government enacted the Commodities Trading Ordinance in 1976. The Hong Kong Commodity Exchange (HKCE) was incorporated in 1977 following the liberalization of commodity futures trading. Raw sugar, raw cotton and soybeans futures were traded during the first phase of the operation.
In 1980, the scope of activities of HKCE was widened to include gold futures trading. Business is conducted under an open outcry system. Each contract covers 100 troy ounces and the original margin required for each contract is US$1,500. Prices are quoted in US dollars per troy ounce and price changes are registered in multiples of US$10 per contract. If the price movement exceeds US$40 per troy ounce above or below the settlement price established at the close of the preceding market day, trading will be suspended for 30 minutes for special margin calls. Tliereafter, trading will resume without limits until the close of the day.
In fulfilment of every contract, the seller must deliver to the buyer 100 troy ounces (5% more or less) of Good Delivery gold bars of 995 fine or better. The weight of each bar can be 100 troy ounces, 50 troy ounces or one kilo. Delivery can be made at the seller's option during any business day from the 23rd day to the last working day of the month specified in the contract.
HKCE changed its name to Hong Kong Futures Exchange in 1985 but the performance of gold futures trading has been below expectation. On the other hand, traders and speculators are keen to trade on the New York Mercantile Exchange COMEX Division in New York and the volume of business conducted by night operators in Hong Kong has been fairly substantial. This is primarily due to greater price activity during New York market hours.
the chinese gold silver exchange socity
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