China's HFT Crackdown Rocks Global Commodity Markets, Metals Prices Plummet

• China implemented strict measures against high-frequency trading (HFT), ordering exchanges like SHFE to remove HFT servers from data centers.
• The crackdown led to an immediate and sharp decline in global metal prices, including copper, zinc, aluminum, and tin, on both Shanghai and London exchanges.
• Copper fell 1% on LME to $12,978/ton, nickel dropped 3%, and tin plunged up to 8% on SHFE, reversing earlier gains.
• The action aims to curb market volatility and disruptions caused by HFT, which had driven trading volumes and prices to record highs.
• While experts believe it will reduce intraday volatility, long-term price trends will still be influenced by China's demand, US tariffs, and overall economic factors.

Why It Matters: China's HFT ban caused a global metals market sell-off, aiming to stabilize prices and reduce volatility.