SHANGHAI, May 28 (SMM) – Shanghai Metals Market (SMM) has successfully completed an assurance review of the Principles for Financial Benchmarks (Principles) published by the International Organization of Securities Commissions (IOSCO) on May 20.
This is the first time that the China leading service provider of the nonferrous metals industry has met the Principles in a third-party audit.
Bovill, an independent, specialist financial services regulatory consultancy, conducted the audit of the assessment methodology, compilation framework and other aspects of SMM’s 38 metals price assessments and certified that the 35 benchmarks and three indices are in compliance with the 19 principles and the four elements (governance, quality of the benchmark, quality of the methodology and accountability) set in IOSCO Principles for Financial Benchmarks.
Please find the list SMM benchmarks that have met the IOSCO Principles for Financial Benchmarks:
SMM 1# Copper Cathode spot price
SMM 1# Copper Cathode of Guangdong spot price
SMM Yang Shan Premium
SMM Copper Concentrate Index
SMM Refining Charge of Copper Blister
SMM aluminium alloy ADC12 spot price
SMM A00 aluminium ingot spot price
SMM alumina price index
SMM Foshan A00 aluminium ingot spot price
SMM #1 Nickel spot price
SMM Nickel Pig Iron (8-12%) spot price
SMM Nickel Sulfate (Battery Grade) spot price
SMM 304/2B Stainless Steel Coil spot price
MMi (Metals Market Index) Iron Ore Price Index
SMM Silver Spot Price
SMM Cobalt Sulfate Spot Price
SMM Cobalt Chloride Spot Price
SMM Lithium Carbonate (Battery Grade) Spot Price
SMM Lithium Hydroxide (Battery Grade) Spot Price
SMM #1 Tin Ingot Spot Price
SMM Didymium Oxide Spot Price
0#/1# Zinc Spot Price
0#/1# Zinc_GuangDong Spot Price
T/C (Treatment Charges) for Zinc Concentrate-Inner Mongolia
T/C for Zinc Concentrate-Yun Nan
T/C for Zinc Concentrate-Hu Nan
T/C for Zinc Concentrate-Guang Xi
T/C for Zinc Concentrate-Shan Xi
T/C for Zinc Concentrate-Si Chuan
1#Lead Spot Price
Secondary Refined Lead Spot Price
T/C for Lead Concentrate-Inner Mongolia
T/C for Lead Concentrate-Yun Nan
T/C for Lead Concentrate-Hu Nan
T/C for Lead Concentrate-Guang Xi
T/C for Lead Concentrate-He Nan
SMM’s CEO Adam Fan said that SMM price indices meeting the external audit requirements against the IOSCO Principles on the first attempt is “a matter of course” as thorough compliance with IOSCO standards has been ensured in the internal assessments of SMM price indices since 2015.
“SMM price indices are the first in China to provide indicative prices and treatment/refining charges for the market and passing the audit against IOSCO benchmark system. This suggests the pre-eminence and universality of methodologies in the field of industrial products,” Mr Fan said.
“The IOSCO external audit is only a starting point, and it helps to promote our business in a wider field—providing a variety of pricing services for global industries and financial markets. SMM will launch more price indices in the future to provide a more scientific basis for global commodity pricing."
More details of SMM’s pricing methodology and specifications are available here.
About Shanghai Metals Market
Shanghai Metals Market (SMM) is China’s leading integrated internet platform provider of nonferrous and ferrous metals. Since 1999, SMM has been providing independent spot prices for the nonferrous metals market. SMM has developed a set of price assessment methodologies on its own that comply with the IOSCO Principles for Financial Benchmarks, and its assessments are widely used in the pricing of metals ranging from base metals to minor metals. SMM's assessment in compliance with IOSCO Principles not only provides professional and reliable reference prices for the market, but also reduces transaction costs for market participants and enhances market engagement across the metals sectors. SMM prices and indices have since being widely recognised and adopted by the industry and used as benchmarks and reference prices in the settlement and transactions across the nonferrous metals industry chain in China and worldwide.
The International Organization of Securities Commissions (IOSCO) is the international body that brings together the world's securities regulators and is recognised as the global standard setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognised standards for securities regulation. It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda. The China Securities Regulatory Commission formally became a member of IOSCO in 1995.
About IOSCO Principles for Financial Benchmarks
In 2013, IOSCO published the Principles for Financial Benchmarks, which addressed a framework of standards that financial benchmark administrators and their benchmarks should comply with in terms of governance, quality of the benchmark, quality of the methodology and accountability.