China Curbs High-Frequency Trading, Global Metal Prices Tumble

• China tightened regulations on high-frequency trading after significant volatility in mainland futures markets.
• Regulators instructed bourses, including Shanghai Futures Exchange (SHFE), to remove high-frequency traders' servers from data centers.
• Aluminum, copper, and zinc prices declined in Shanghai and on the London Metal Exchange (LME) following the crackdown.
• Earlier in the week, global metal markets, including copper and tin, saw record highs due to investor enthusiasm for real assets.
• SHFE has mandated brokers to relocate high-speed client equipment by month-end and other clients by April 30.

Why It Matters: China's crackdown on high-frequency trading led to a sharp decline in global metal prices.