From Reuters late last week:
China’s Dalian Commodity Exchange is looking at starting overnight trade in iron ore futures, which would give investors the chance to deal when Western markets are open and respond more promptly to volatility.
…The exchange will conduct tests of overnight trading in several futures contracts including soybeans, coking coal and iron ore this weekend during the night of Dec. 6-7, it said in an announcement on its website.
“Market players have shown a growing interest, so we believe iron ore is suitable for overnight trade after conducting research, but we will make the final decision on whether or when to launch official overnight trading for the contract after reviewing the test results,” spokesman Wang Weijun said.
The contract, launched in October 2013, has given Chinese investors more influence over the pricing of a commodity that has fallen about 43 percent this year.
“Overnight trade may not attract large trading volume at first, but we have to say that Dalian’s iron ore futures have been quite successful as a key market indicator,” said an iron ore futures trader in Shanghai.
No news on how it went yet. Greater global participation in the Dalian exchange could throw up all sorts of new volatility.
