The Global Market was introduced in 2010 to provide both Commodity Derivative and Equity Derivative market participant’s easy access to a single trading platform where a number of cash settled foreign referenced commodity products are listed. Today there is a series of Commodity derivative metal products, energy products, as well as a range of Quanto products listed on this platform. The underlying commodities are listed and traded under license from the CME Group.
Foreign Referenced Commodity products offer price mitigation or directional price exposure opportunities to a range of market participants. A significant benefit is that these products are available to both derivative memberships and their respective clients…..therefore no need to open up new trading accounts to access these exciting commodity contracts. No exchange control approval is required as they are classified as inward listed. There’s also a range of Quanto products which appeal to Investors seeking foreign commodity exposure without the corresponding risk of adverse exchange rate fluctuations.
To access this product, an investor needs to register as a client with either a Commodity derivatives or Equity derivatives authorised member firm, deposit the required initial margin and sell or buy according to their market view.