Regulators have asked bourses, including the primary commodities platform, the Shanghai Futures Exchange, to remove servers run by high-frequency traders from their data centres. Aluminium, copper, and zinc all saw declines in Shanghai and on the London Metal Exchange, which determines the metals’ benchmark pricing globally.
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Earlier this week, a wave of investor enthusiasm for real assets caused global metal markets to soar higher, with copper and tin setting records in London.
As a result, trade volumes on SHFE have increased significantly over the past month due to strong sentiment in Chinese financial markets.
According to the person, SHFE has instructed brokers to deliver equipment for high-speed clients by the end of the month, while other clients must do so by April 30. In order to outperform competitors, high-frequency traders place servers as close to exchange data centres as feasible.
Tin fell 5.9% on SHFE, while copper fell 1% at 101,540 yuan ($14,575) a tonne at 10:51 a.m. local time, following an earlier increase of up to 0.6%.
(Edited by : Juviraj Anchil)
