Sicoms innovative new gold contract ready to roll - Future and Options Intelligence

Sicom’s innovative new gold contract ready to roll 11 Mar 2010

Singapore Commodity Exchange will open trading of its new Gold Deferred Settlement Contract on Tuesday March 30 at 9.38am Singapore time.

The contract’s unique feature is that it is priced as a spot contract with deferred settlement. Open positions at the end of each trading day are automatically rolled forward using current interest rates.

They are margined and marked to market daily based on the...

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In several crucial ways, commodity derivatives differ from conventional insurance. Ordinary insurance companies only insure against bad events, which no one wants to happen: death, fires, ships sinking. If these things happen the insurer loses; the insured is compensated. The bad events can be made less likely through precautions, but cannot be made more likely except by heinous crime. And no one can make a lot of money by being spectacularly right.

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Sicom’s innovative new gold contract ready to roll 11 Mar 2010

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