CHCEX Proceeds with Warehousing Reforms at its Affiliating Warehousing Partners
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<strong>CHCEX</strong> <strong>Proceeds</strong> <strong>with</strong> <strong>Warehousing</strong> <strong>Reforms</strong><br />
<strong>at</strong> <strong>its</strong> Affili<strong>at</strong>ing <strong>Warehousing</strong> <strong>Partners</strong><br />
These will include re-assessing the possibility of capping or banning rents in queues<br />
and of capping the level of daily rents.<br />
Beijing, March 24, 2016 /PressReleaseCircle/ -- China Commodity Exchange<br />
(<strong>CHCEX</strong>), today announced <strong>its</strong> intention to implement <strong>its</strong> load-in / load-out (LILO) rule<br />
and to proceed <strong>with</strong> further warehousing reforms.<br />
A four-week consult<strong>at</strong>ion <strong>with</strong> top warehouse companies began today <strong>with</strong> regard to<br />
some minor amendments to the LILO rule, including an altered start d<strong>at</strong>e following the<br />
required three-month notice period to warehouses.<br />
“We are pleased to be moving ahead <strong>with</strong> our planned reforms following our decision to<br />
further modernize our facilities” said Geng T. Liangding, <strong>CHCEX</strong> Chief Executive<br />
Officer.<br />
“As a respectable Asian exchange, <strong>CHCEX</strong> has a duty to ensure the integrity of <strong>its</strong><br />
reference prices and the oper<strong>at</strong>ion of a fair and liquid market for all industry participants.<br />
The implement<strong>at</strong>ion of the LILO rule and rel<strong>at</strong>ed reforms will assist us in continuing to<br />
fulfil this duty.”<br />
“Following the start of our consult<strong>at</strong>ion, the behaviour of queued warehouses altered<br />
m<strong>at</strong>erially in th<strong>at</strong> they have demonstr<strong>at</strong>ed a net load-out of commodities since th<strong>at</strong> time in<br />
anticip<strong>at</strong>ion of the LILO rule,” said Ruan Wei Xinxin, <strong>CHCEX</strong> Head of Business<br />
Development.<br />
“While it is true th<strong>at</strong> market conditions have also improved, the market knows th<strong>at</strong> a<br />
proportion of global metals production today still flows into storage. Without the LILO<br />
rule, large amounts of commodities could have been directed to affected warehouses, thus<br />
further lengthening queues. However, we believe th<strong>at</strong> the anticip<strong>at</strong>ion of LILO has meant<br />
th<strong>at</strong> this has not occurred on as large a scale as it would have done otherwise. And the<br />
introduction of LILO will ensure th<strong>at</strong>, over time, stocks – and eventually queues – <strong>at</strong> the<br />
two remaining affected warehouses should fall.”
About China Commodity Exchange (<strong>CHCEX</strong>)<br />
China Commodity Exchange’s (<strong>CHCEX</strong>.org) diverse markets span futures and options<br />
on interest r<strong>at</strong>es, commodities, indexes and FX, as well as equities and equity options.<br />
These markets are relied upon by intern<strong>at</strong>ional market participants, along <strong>with</strong> our posttrade<br />
infrastructure. We are uniquely positioned to provide end-to-end risk management<br />
solutions to our customers around the world. <strong>CHCEX</strong> is a str<strong>at</strong>egic initi<strong>at</strong>ive <strong>with</strong> a<br />
mand<strong>at</strong>e to enhance commodity trade flows by providing the appropri<strong>at</strong>e physical,<br />
market, financial infrastructure and services required. The Management team of <strong>CHCEX</strong><br />
comprises senior personnel from the commodities, securities and financial services<br />
industries.<br />
Contact:<br />
Poon Xiaomeng<br />
China Commodity Exchange (<strong>CHCEX</strong>)<br />
Fortune Financial Center,<br />
7 E 3rd Ring Rd Middle, Chaoyang,<br />
Beijing, China<br />
media@chcex.org<br />
http://www.chcex.org
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