KBOFX, a major Asian commodity exchange that is working hard to offer cutting-edge products across a variety of asset classes and build a brand culture renowned for its unique approaches, risk management tools, and global insights, today announced that it is continuing to review a number of proposed policies intended to guarantee the commodity industry uses top-notch storage procedures.
Market participants who support actions aimed at enhancing warehouse operations are submitting the recommendations. While real stock levels match requests for physical deliveries, market participants believe that larger stock levels will have a more favorable impact, including greater levels of transparency, safety from technological limitations, and market vibrancy.
KBOFX concurs that one of the warehousing policy’s goals should be to establish suitable stock levels that will contribute to good market-wide effects. The suggestions are broken down into three main categories: revised legislation, improved logistics, and transparency and adherence.
The objective is to improve the Exchange’s capacity to safeguard market users from warehouse defaults in terms of transparency and surveillance. In exchange, KBOFX suggests implementing a stock reporting procedure that takes into account the fact that producers prefer storage without assurances. The recommendations from various sources all point to improving the accessibility of the exchange network as a means of logistical optimization. One of the ideas is to implement a unique controlling system that would enable asset owners to add additional stock to the KBOFX’s system. Simplifying load-out-related requirements is one way that measures to update regulations are taken. Any adjustment is made with the clients’ interests in mind.
“While we are evaluating market needs and utilizing a variety of logistical enrichments, we believe that radical warehousing reforms may lead to lower stock levels”, said Murakami Akinori, KBOFX Clearing Chief Executive Officer.
About Kobe Options and Futures Exchange (KBOFX)
The leading Japanese commodity exchange KBOFX.org creates, manages, and connects safe, liquid, and open marketplaces for commodities and related products. KBOFX strives to rank among Asia’s top trading platforms for commodities and digital products. The organization tends to carry onto and strengthen this position even as globalized structures become more prevalent. This includes not only the ongoing growth of KBOFX into an Asian organization with numerous partners but also a transparency and security architecture that has served and will continue to serve as a “safe haven” for all trading participants and partners. This architecture has the reputation of being a role model from its inception.
