COMMODITIES IN FOCUS
In the news
“Nickel and diming”
In January 2014 the Government of Indonesia banned
exports of raw unprocessed ores in an attempt to boost
Indonesia’s processing industry. However recent
regulations now permit the export of metal mineral
concentrates, including copper concentrate, and allow
the resumption of exports of nickel ore and bauxite ore.
This has been a blow to investors who had started to
invest in new or expanded smelting facilities in
Indonesia. Following the announcement of the recent
regulations, there was a short term tumble in nickel
pricing, now corrected. However a residual concern is
that those regulations merely signal a broader trend of
relaxation of control over the export of unprocessed
ores, and so are an overture to further pricing volatility.
Stephenson Harwood to launch in Myanmar
Stephenson Harwood is opening an office in Yangon,
Myanmar. The new office is expected to open this year.
The firm has been advising clients in Myanmar, and
international clients investing there for many years.
The new office will support the demand of the growing
client base and expand the firm's global network of
offices to ten.
Final report on guidelines on the Market
On 17 January 2017, the European Securities Markets
Authority released their finalised guidelines on inside
information reasonably expected to be disclosed by
market participants, including information directly
relating to spot commodity contracts. This is the latest
piece of delegated legislation brought in by the new
European Market Abuse Regulation (
) which came
into force on 3 July 2016. The new regime has a
significant impact on the regulation of the spot
commodities markets both in the UK, EEA and further
afield. MAR makes manipulation of not only commodity
derivatives but also related spot commodity contracts
We will be exploring the impact that MAR
has on the spot commodity markets more fully in the
next edition of Commodities in Focus.
New ICC Rules of Arbitration
The ICC Court of Arbitration has announced a revision
to its Rules which will come into force on 1 March 2017.
The revisions seek to address growing demands from
users for greater transparency and efficiency in ICC
The changes include a new expedited procedure for
lower value claims and a requirement for the ICC Court
to communicate reasons to the parties for the
appointment, removal, challenge or replacement of an
For further detail, see article New ICC expedited arbitration procedure is key revisions to the ICC Rules
by Stephenson Harwood partner, Shai Wade and
associate, Ayo Awe.