Shanghai Futures Exchange’s Copper Opens to International Participation

 The much anticipated inclusion of international participation in the Contract is planned to be launch on Nov. 19, 2020.

The enthusiasm for the highly liquid contract inclusion doesn’t come as a surprise as global capital markets traders seek alpha.

China is the world’s top consumer of metals and accounts for over 50% of the world's demand for copper.

The contract size is 5 metric tons, the price is quoted in Chinese Yuan, and the trading hours are 9:00 a.m. to 11:30 a.m. and 1:30 p.m. to 3:00 p.m.

Often considered a low risk commodity by traders because of its versatile applications and sometimes used as collateral in China’s shadow banking industry copper demand in China remains steady. #china #futurestrading #futures #SHFE #shanghai #copper #LME #cmegroup Ceres Ltd #alpha

Chinese Iron Ore Futures

 

 

Interested in trading Chinese markets? Iron Ore Futures are one of the contracts open to foreign participation.

The Iron Ore Futures Contract is traded on the Dalian Commodity Exchange (DCE) launched in October 2013 to local traders and international participation started in May 2018.

Iron Ore has been hot hot hot , maybe a little too hot and the exchange has been trying to cool it off a little by imposing trading limits and increasing margin requirements and with excess supply hitting the market it has pushed prices down but the liquidity is amazing and I believe its going to be red hot again soon.

Prior to the launch I had the honor to be invited to a prelaunch Q&A session with the DCE; it was very insightful to learn how the DCE viewed foreign participation and their goals for the contract.

The contract specs are: trading unit is 100MT/ lot, quoted in CNY; trading hours are in Chinese trading hours 9:00 - 11:30 a.m., 1:30 - 3:00 p.m., Beijing Time, M to F

 

David Nealis with DCE at the FIA Expo Chicago

The contract specifications are:

Iron Ore Futures Contract of Dalian Commodity Exchange ("DCE")

Product	Iron Ore
Trading Unit	100 MT/Lot
Price Quote Unit	CNY/MT
Minimum Tick Size	0.5 CNY/MT
Daily Price Limit Range*	4% of last settlement price
Contract Months	Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sep, Oct, Nov, Dec
Trading Hours	9:00 - 11:30 a.m., 1:30 - 3:00 p.m., Beijing Time, Monday to Friday, and other trading hours announced by DCE
Last Trading Day	The 10th trading day of the contract month
Last Delivery Day	The 3rd trading day after the last trading day
Deliverable Grades	Iron Ore Delivery Quality Standard of DCE (F/DCE I001-2017)
Delivery Point	The delivery warehouses and delivery locations of iron ore designated by DCE
Minimum Trading Margin*	5% of the contract value
Delivery Form	Physical delivery
Ticker Symbol	I
Listed Exchange	DCE

Note: DCE may adjust the daily price limit ranges and the trading margins of each contract according to market conditions. For details of current trading parameters of each contract, please see below website:

www.dce.com.cn/DCE/TradingClearing/Business%20Parameters/Trading%20Parameters/index.html

Disclaimer: This English translation may be used for reference only. In cases there is any discrepancy between the English version and the original Chinese version, the original Chinese version shall prevail. Dalian Commodity Exchange may change or update this English translation without any prior notice and shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or change with regard to this English translation.

 

For more information about the DCE Iron Ore contract visit their website via the link below

http://www.dce.com.cn/DCE/Products/Industrial/Iron%20Ore/491886/index.html

a Japanese Kokeshi Doll and Thoughts of the Future

Normally I am one of the many people who are on their way to a location on the global far from their home. But as this virus ravages across the earth I am hunkered down in the Chicago area trying to stay productive.

The positive side of being here for months and months is it has given me some time to reorganize things in my home and get to some of those projects that I put on the Some Day When I Have The Time list. I am finally getting to those boxes that have been sitting in my crawl space for so long that I’ve forgotten what’s in them.

One happy find was this Kokeshi doll:

I acquired this Kokeshi doll in the mid-1990s; the previous owner had a note in the box stating that they purchased it in 1972.

The little book that came in the box 

The maker of the doll signed the bottom

Kokeshi are simple wooden dolls with no arms or legs and simple painted lines to define the face. Originally from Tohoku-chiho  which is in the northeastern region of Japan.

 From the Edo period to modern times the Kokeshi dolls have had traditional to very creative designs, I am looking forward to seeing what the next generation of Kokeshi doll makers design.

After nearly 3 decades of traveling the globe from one adventure to another, I can’t help but to reflect on those years and wonder what the future will bring.

Uzbekistan moves forward to liberalize their economy

David Nealis in Tashkent Uzbekistan

Ceres Ltd works with several private firms and state agencies in Uzbekistan providing consulting to them in their desire to enter global capital markets. At Ceres we are interested in partnering with investment banks who would like to be involved in this process, if you have an interest in bringing Uzbek firms and state owned enterprises to global capital markets please contact us at info@ceres888.com

Uzbekistan is a nation rich in history as well as in commodities. Uzbekistan has recently started to liberalize their economy and the nation plans to be more involved with global capital markets.

Uzbek pottery

Uzbekistan is 7th in the world when it comes to mining gold, producing 80 tons of gold annually. They are ranked 10^th in the world for copper deposits, 12^th for uranium deposits but they are ranked 7^th in the world when it comes to uranium production.

The Uzbek national gas company, Uzbekneftegas, ranks 11th in the world in natural gas production with an annual output of 60 to 70 billion cubic metres (2.1–2.5 trillion cubic feet). The country has significant untapped reserves of oil and gas. It produces about 40,000 barrels of oil per day.

When it comes to agriculture about 17% of Uzbekistan’s GDP comes from agriculture, cotton being one of the most important crops grown in Uzbekistan.  

to learn more about Ceres Ltd please visit our website https://ceres888.com/

David Nealis speaks at the CME Group about trading global markets

Recently I spoke to a group of Chinese investors and traders who were visiting the CME Group from China.

David Nealis speaking at the CME Group about International Trading Advantages

I always enjoy speaking to traders and investors about trading opportunities in global capital markets, so I was delighted to speak at the CME Group in Chicago about international trading opportunities.

Obviously the CME Group is the place that the world comes to trade futures but there are great trading opportunities around the world as well. 

Today there are many similar contracts to CME contracts all over the world creating arbitrage trading opportunities.  Gold, Silver, Corn, Soybeans, Coal and Crude Oil are just a few examples of them

David Nealis in soybean field

And then there are some exciting contracts that are completely independent to the CME, I’ve found several Chinese futures contracts to be great trading opportunities,  some of the contracts that I have found interesting are Iron Ore, Apples, JuJuBe ( red dates), and Egg futures. 

If you are interested in our services please contact us at info@ceres888.com

If you’d like to know more about our firm or David Nealis please view our website. https://ceres888.com/Home.html

NASDAQ Opening Bell

David Nealis, Mike Wu, Jane Yang, Bill Barry at NASDAQ's Opening Bell

David Nealis and Jane Yang of Ceres Ltd with business associate Bill Barry bring Ceres ltd client Michael Wu to NASDAQ’s Opening Bell.

David Nealis, Mike Wu, Jane Yang, Bill Barry at NASDAQ

We provided to consulting to Mr Wu and the several entities he represents regarding entering US Capital markets to include OTC and NASDAQ.

We introduced Mr Wu to management at Nasdaq as a part of capital markets consulting service.

David Nealis , Jane Yang and Bill Berry on the big screen in Times Square

Ceres Ltd provides consulting to firms that would like to enter capital markets if you are interested in our services please contact us at info@ceres888.com

David Nealis and Bill Barry in Times Square with Ceres client on the big screen behind us

If you’d like to know more about our firms please view our website. https://ceres888.com/Home.html

Down on the farm in Inner Mongolia

David Nealis and Jane Yang on the farm in Inner Mongolia 

a local variety of apple grown on the farm

David Nealis “The farm is one of my inspirations; I truly feel that is privilege to be involved.

The farm raises hogs, sheep, chickens and rabbits. In addition to livestock the farm also grows corn, hemp, beans, a unique local apple as well as other crops.

Over the years we’ve tested other crops for example various varieties of corn, jalapeno and habanero peppers. I am always searching for something new to grow or raise there.”

David Nealis on the farm in Inner Mongolia

David Nealis is a co-investor in Jane Yang’s family farm 

For more information about David Nealis and Ceres Ltd please visit our website: https://ceres888.com/Home.html

hemp that is organically grown on the farm

Ceres Ltd introduces Huishang Futures to the CME Group

Ceres Ltd brought Huishang Futures of China to meet the CME Group.

David Nealis with Hushang Futures at the CME Group

In our service to aid Huishang Futures internationalization process we brought them to Chicago to learn directly from some of the amazing firms in the futures industry, no trip would be complete without a meeting at the CME Group.

Huishang Futures expressed an interest to become a US based FCM and we suggested that the first American exchange that they should become members of should be the CME Group.

Ceres has provided with a variety of services to include but not limited to International Expansion, Brokerage, M&A, and Education. If your firm can utilize our services contact us at info@ceres888.com  

For more information about David Nealis and Ceres Ltd please visit our website: https://ceres888.com/Home.html

Ceres Ltd prepares Huishang Futures to be an exhibitor at the FIA Expo

Ceres Ltd with Huishang Futures are the FIA Expo in Chicago

Ceres Ltd prepares Huishang Futures to be exhibitors at the FIA Expo in Chicago.

Jane Yang and David Nealis of Ceres with Huishang Futures at the FIA Expo in Chicago

The FIA Expo is the world’s largest Futures and Options Expo; it was a great opportunity for Huishang Futures to introduce themselves to the international futures industry and education futures traders about opportunities in trading Chinese futures contracts.

Bob Meara of Ceres Ltd with Huishang Futures at the FIA Expo in Chicago

We had the opportunity to work the FIA Expo booth in Chicago with Huishang Futures.Culturally there are big differences in way Americans and Chinese work a booth at an industry trade show, it was a rewarding experience to train them on the differences and help them work the booth.

David Nealis at the FIA Expo in Chicago

For more information about David Nealis and Ceres Ltd please visit our website: https://ceres888.com/Home.html

Ceres Ltd brings Huishang Futures to meet FCMs in Chicago

Two years ago Ceres Ltd signed a contract to aid Huishang Futures in their efforts to internationalize. Apart of that process was to educate them on the differences between the Chinese financial system and the American financial system in addition to classroom education we also brought them to Chicago to learn directly from some of the amazing firms in the futures industry as well as to find potential business partners.

David Nealis brings Huishang Futures to meet Tim Foley at Advantage Futures

At the heart of the futures industry are the FCMs, to over simplify it they are the clearing firms of futures trades, but they often do much more than this. At the bottom of this page we have put a definition of a FCM. It was important to bring Huishang Futures to meet and learn from USA FCMS, not only because it’s Huishang’s goal to become a US FCM and they should fully understand how different the Chinese and USA systems are.

One of the many examples is a US FCM is a private firm which in addition to many services also clears the trades but in China this is a centralized government owned clearing firm and also all of the relevant brokerage firms are owned  by the Chinese government in one form or another.

Ceres Ltd brings Huishang Futures to meet Wedbush in Chicago

Another very important difference is in the USA the FCMs are responsible for risk management, but in China there are additional layers between the brokerage firm and the exchanges for example there is centralized government owned clearing organization as well as a national Chinese risk organization. The US firms do not have this additional safety net so rigorous risk and compliance are vital to its operations.

David Nealis brings Huishang Futures to Dorman Trading

Ceres ltd brings Huishang Futures to meet ED&F Man in Chicago

David Nealis brings Huishang Futures to meet Phillip Capital in Chicago

An FCM is a Futures Commission Merchant. An FCM is an individual or organization that solicits and/or accepts orders to buy or sell futures contracts, options on futures contracts, retail foreign exchange contracts or swaps and accepts money or other assets from customers to support such orders.

Mr Dorman did an amazing job of explaining the US futures industry and its history to Huishang Futures.

* we introduced Huishang to several other FCMs that aren't pictured.

For more information about David Nealis and Ceres Ltd please visit our website: https://ceres888.com/Home.html

Ceres brings Huishang Futures to meet trading platform firms in Chicago

Around two years ago Ceres Ltd signed a contract to aid Huishang Futures in their efforts to internationalize. Apart of that process was to educate them on the differences between the Chinese financial system and the American financial system in addition to classroom education we also brought them to Chicago to learn directly from some of the amazing firms in the futures industry.

David Nealis of Ceres Ltd brings Huishang Futures to Trading Technologies

One of the first stops on the list was to meet with some of the amazing futures trading platforms that global capital markets traders use. Since trading in China is very insulated trading global capital markets from one platform is a relatively new concept for the average trader there.

Ceres Ltd brings Huishang Futures to the CQG office in Chicago

Ceres Ltd brings Huishang Futures to meet with CTS in Chicago

For more information about David Nealis and Ceres Ltd please visit our website: https://ceres888.com/Home.html

Ceres Ltd brings Huishang Futures to the trading floor in Chicago.

David Nealis brings Joyce Jiang of Huishang Futures to the trading floor in Chicago

Two and a half years ago Ceres Ltd started to cooperate with Huishang Futures, as part of our consulting with them we brought them to Chicago the heart of the world’s futures trading and we took them onto the trading floor in Chicago to get a sense of history for futures trading.  The Chinese exchanges are purely electronic so we felt this would be an important experience for them.

Though today most of the trading at the CME is done electronically it’s still a great experience to visit the trading floor.

Jane Yang of Ceres Ltd on the trading floor in Chicago

For more information about David Nealis and Ceres Ltd please visit our website: https://ceres888.com/Home.html