GREY:RNKLF - Post by User
Comment by
roberto146on Oct 15, 2019 10:44am
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Post# 30231391
RE:Also of interest
RE:Also of interest"The Shanghai gold exchange has just entered an instrument for trading on the Comex, unallocated I believe. I wonder what the motive is?"
It's actually a Comex futures contract based on the Shanghai gold exchange price. The SGE is like the old London fix and provides pricing twice a day for physical delivery to authorized dealers. So the SGE provides for physical delivery, the Comex contract is for financial settlement.
The 'motive' is speculation on SGE price.
It's not unallocated gold, which would mean you could take delivery of open stock as in a Comex futures contract, but is a pure derivative with no physical redemption. Settlement is defined as 'Financial'.