UBS SDIC Fund to Conduct Arbitrage of Commodity Futures

David Nealis at the China Financial Futures Exchange Shanghai

UBS SDIC Fund to Conduct Arbitrage of Commodity Futures
China has approved the country's first fund to conduct commodity futures arbitrage trading, which analysts said could bring maturity and stability to the country's volatile commodity futures market. UBS SDIC, a fund management JV between UBS AG and the parent of the State Development and Investment Corp (SDIC), will be able to arbitrage commodity futures through a managed account product. Unlike the nation's stock market, most participants in China's commodity futures market are speculators and industry hedgers, with few professional institutional investors such as investment funds.