China's High-Frequency Trading Crackdown Sinks Global Metal Prices

• Chinese regulators ordered exchanges, including SHFE, to remove high-frequency trading servers from data centers.
• The move followed frenzied activity and record highs for metals like copper and tin, driven by investor enthusiasm.
• Copper, zinc, and aluminum declined on both Shanghai and London Metal Exchange after the announcement.
• Experts believe the measures will reduce intraday volatility but not alter fundamental price direction.
• The crackdown extends to other platforms like Guangzhou Futures Exchange, impacting commodities such as lithium.

Why It Matters: China's regulatory clampdown on high-frequency trading has caused a significant drop in global metal prices.