Singapore's SMX launching copper, gold, silver trade

Cash settled contracts redirect demand away from physical markets. The weak hands get redirected while the strong hands accumulate.

Headline: CORRECTED-Singapore's SMX launching copper, gold, silver trade

The Singapore Mercantile Exchange will launch cash-settled gold, silver and copper futures contracts on April 15, the exchange said in a press release, which may carve out a new market for speculators seeking arbitrage opportunities.

"(The) exchange will begin trading cash-settled gold, silver and copper futures contracts from April 15, 2011, in contract sizes of 100 troy ounces, 5,000 troy ounces and 5 metric tons (MT) respectively," the exchange said in the note.

Source: reuters.com