T F E X Temporarily Halts Commodity Futures Trading

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BOSTON BOMBING
TFEX temporarily halts commodity futures trading
The Nation

BANGKOK: -- The Thailand Futures Exchange (TFEX) temporarily halted trading of gold, silver and crude oil futures during 9.45-10.15am on Wednesday, following volatility of the commodity prices after the Boston marathon bombing.

Global stocks yesterday fell while the Stock Exchange of Thailand was spared as it was closed for the Songkran holiday. The SET index as of 11am remained in the positive territory, gaining 3.08 points or 0.20 per cent on turnover of Bt17 billion. Wall Street however closed near session highs, recovering losses from sharpest 1-day drop this year, boosted by upbeat corporate earnings and economic data.

TFEX announced that it halted the commodity futures trading as prices chaned up or down by 10 per cent from the latest settlement prices of last Friday. After the reopening, the daily price limit will be expanded to no more than +/- 20% of the latest settlement price.

In a statement issued on Sunday, the exchange said that the halt was supported to help investors to thoroughly consider all related information, monitor the changing prices of each commodity, and review their

trading strategies.

After In addition, the daily price limit will be expanded to no more than +/- 20% of the latest settlement price.

TFEX Managing Director Kesara Manchusree said global commodity prices, including those of gold, silver, and crude oil, have been volatile and decreased significantly during the recent Songkran public holiday. On April 15, the COMEX gold futures price was down by over US$140 per troy ounce, or 9.4 per cent, its biggest intra-day drop in 30 years. Meanwhile, prices of other commodity products also fluctuated and decreased.

TFEX gold futures had its daily settlement price at B21,370 per one baht gold

on Friday April 12, where gold price in London’s LBMA (AM) was at $1,548 per one troy ounce, and price in New York’s COMEX (April delivery) closed at $1,501 per one troy ounce on Friday. Later on Monday April 15, both LBMA and COMEX markets dropped and closed at $1,416 and $1,360.60 per one troy ounce respectively, while TFEX and Thai Gold Traders Association were closed.

"Due to consistent drop of global commodities prices during long holidays, we

may notice that prices of gold, silver, and oil futures have significantly changed over the long weekend, and this may effect investors with net buy position. Thus, investors should closely monitor changing commodity prices, including these three products, ensure sufficient margins and adapt their investment portfolios to match the price volatility of each commodity type," Kesara said.

-- The Nation 2013-04-17

[4evermaat]

I saw a similar article on forexmagnates. why would any reputable futures exchange completely shut down trading for a particular product, especially a derivitive as popular as gold?

[mccw]

This stopping people buying at the low prices; for what exactly?

[55Jay]

You know, all these New World Order conspiracy "nuts" keep calling these things, and here in LOS, we can count on the Nation to print it.

Fall in gold, nothing to do with Boston bombing.

But as each day passes, no leads and more importantly, no group has taken responsibility for the successful operation, this is getting a little too convenient.

[55Jay]

This stopping people buying at the low prices; for what exactly?

The answer is right in the article.

How do you stop a panic? You close the bank and switch off the ATM.

Intervention is warranted if "the house" is losing.