Fanya crisis – MMTA’s decision to keep its distance proven correct

As investors protest to the Yunnan provincial government in China, minor metals trader Anthony Lipmann considers some of the lessons that should be learned from the Fanya crisis.

Whether the Fanya minor metals exchange crisis will result in an obituary or just a case of extreme hospitalisation remains to be seen. But with reports that Chinese “investors” have been apparently unable to find the liquidity needed to sell out their Fanya positions, there will be some in London rubbing their hands in xenophobic glee. So perhaps it is a moment to ask what Fanya’s contortions can teach us? When Fanya came into being in about 2013, proclaiming to market minor metals to investors, the Minor Metals Trade Assn (MMTA) did not have the luxury of indifference. This was an entity, which by its formation in one of the largest producing markets of minor metals, seemed, at a stroke, to shift the focus of our trade from London to China. A further reason it could not be ignored was that the MMTA found itself in the...

Published

July 20, 2015

13:01 GMT

London