FX.co ★ Copper Drops as China Curbs HF Trading

Copper futures experienced a decline, reaching approximately $5.90 per pound on Friday, marking the second consecutive session of downturns. This movement followed China's announcement to crack down on high-frequency trading, part of its broader initiative to mitigate risks within its capital markets. Chinese regulators mandated the removal of servers operated by high-frequency trading firms from mainland exchange data centers. These firms traditionally position servers in close proximity to exchange systems to secure a speed advantage in trade execution. This decision led to notable declines in copper and other metals traded in Shanghai, London, and New York, distancing prices further from previous record highs.

Furthermore, copper faced additional pressure this week as the United States decided to postpone the implementation of tariffs on critical minerals. Copper was added to the U.S. critical minerals list last year due to its significance for national security, defense technologies, and grid electrification.