Louis Dreyfus Co. has requested Intercontinental Exchange Inc. to mediate in a dispute regarding delays in the delivery of sugar sold via the New York bourse, reported Bloomberg citing people familiar with the matter.
The Rotterdam-headquartered firm, known as one of the largest agricultural commodities traders globally, has not yet received certain quantities of sugar that were sold over two months ago when March futures expired. According to individuals familiar with the situation state that the delays prompted the request for Intercontinental Exchange Inc. to intervene and assist in resolving the dispute with seller Wilmar International Ltd.
The situation underscores how certain traders use technicalities and loopholes in market regulations, prompting discussions about whether existing exchange rules adequately safeguard buyers. As per reports, ICE doesn’t state a time frame for vessels to be loaded as long as the seller pays demurrage, the cost for holding back a vessel — something that’s happening.
According to the media report, as of now there are no official comments made on the issue.
