JFX ready to trade gold in January<\/p>\n
Tantri Yuliandini, The Jakarta Post, Jakarta<\/p>\n
The Jakarta Futures Exchange (JFX) is ready to trade in gold
\nby the end of January next year following a positive response to
\nthe commodity during the trade simulation period, JFX president
\nHasan Zein Mahmud announced on Wednesday.<\/p>\n
He said that gold as a commodity was the most ready to be
\ntraded at the JFX as it has a higher economic value than other
\ncommodities such as sugar, peanuts and plywood.<\/p>\n
According to the presidential decree dated Nov. 26 2001, the
\nbourse could begin the trading of 22 commodities including
\ncoffee, oil, plywood, rubber, cacao, pepper and sugar.<\/p>\n
Also specified in the decree are peanuts, soya beans, cloves,
\nshrimp, fish, oil, natural gas, electricity, gold, coal, tin,
\npulp and paper, thread, cement and fertilizer.<\/p>\n
The 1997 law on futures commodity stipulated that all trade
\ncommodities must be approved by the government through a
\npresidential decree.<\/p>\n
\"But the JFX must prioritize which commodities are the most
\nready, and gold is the most ready,\" Hasan was quoted by Antara as
\nsaying, adding that besides gold the bourse would also prepare
\nthe trading of fertilizer, coal and cloves.<\/p>\n
However, the bourse would not be in a hurry to trade oil,
\nnatural gas and electricity because their prices are still
\ndetermined by the government.<\/p>\n
\"One of the prerequisites for commodities traded in the bourse
\nis that prices are determined by the market, not by the
\ngovernment,\" Hasan said.<\/p>\n
The JFX first opened for trade on Dec. 15, 2000, after a two-
\nweek simulation period, with olein, a derivative of crude palm
\noil (CPO), and robusta coffee as the initial commodities.<\/p>\n
Commenting on the performance of JFX after one year of
\noperating, Hasan said that progress of the bourse has been slow
\nbut has shown a positive trend especially during the last few
\nmonths.<\/p>\n
\"JFX's performance hasn't been too bad although the trading
\nvolume hasn't been big,\" he said, adding that he was optimistic
\ntrade would continue to improve next year along with the people's
\nincreasing awareness of the bourse.<\/p>\n
Hasan said that in the last six months of the year the volume
\nof olein traded in the bourse increased by an average of 20
\npercent a month, with 2,902 lots in July, 3,522 lots in August,
\n4,528 lots in September, 4,506 lots in October, 7,370 lots in
\nNovember and as of Dec. 10, 2,064 lots.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jfx-ready-to-trade-gold-in-january-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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