The U.S. Commodity Futures Trading Commission on Wednesday (13 May) issued an advisory to remind Debt Capital Market (DCMs), Futures Commission Merchants (FCMs), and Derivatives Clearing Organization (DCOs) that they are expected to prepare for the possibility that oil prices may continue to experience extreme market volatility, low liquidity and possibly negative pricing.
The Commission emphasized that the subject of the notice applies equally to trading in other commodities, and registrants should remain vigilant and prepare accordingly.
In addition to considering risk controls and related issues, it encouraged DCMs, FCMs, and DCOs to ensure their customers and members have appropriate information on the risks and technical elements of contracts and trading around upcoming expirations.
It reminded exchanges to ‘maintain rules to provide for the exercise of emergency authority’ to the extent that they should ‘suspend or curtail trading in any contract’ where necessary.
The Commission said the warning was issued: ‘in the wake of unusually high volatility and negative pricing experienced in the May 2020 West Texas Intermediate (WTI)’, which resulted in the global crash of oil prices in April, signalling the possibility of a repeat of events as the next WTI June contract expiry.
The complete document is available for download here.
Photo credit: U.S. Commodity Futures Trading Commission
Published: 18 May 2020
The local bunkering sector has adapted to IMO 2020 requirements and LSFO is now available at more than two earlier locations, notes bunker supplier Trillion Energy.
Claiming USD 108,887.87 for the supply and delivery of 310.00 mt of low sulphur marine gas oil at the Port of Jeddah on or about 23 February 2020.
A sanitisation expert offers Manifold Times a summary of the processes involved in disinfecting a ship together with the equipment and products used in the operation.
‘As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction,’ says Simon Neo.
Laboratory looking to collaborate with Singapore bunker surveyors to roll out COVID 19 testing service, which has been successfully adopted by land-based industries, to the maritime sector.
Sinfeng Marine Services filed an application to the Court of Appeal to withhold information from the liquidators on October 2019; the appeal was dismissed a month later.