Commodity Disruption Event for SGMACRO due to nickel market dislocation



A Commodity Disruption Event has occurred with respect to the IND1CART Index, which is an underlying component of the SG Macro Compass Index. The nickel market has experienced significant dislocation in recent weeks. Societe Generale, as Index Sponsor, has determined that such dislocations are disrupting and impairing the ability of market participants to effect transactions in, or obtain market values for, nickel. In order to preserve the economic characteristics of the Index and in accordance with the Index rules, the Index Sponsor has determined to remove nickel from the IND1CART Index effective April 7, 2022 until further notice. Beginning April 8, 2022, the IND1CART Index will be calculated without the inclusion of nickel. The Index Sponsor has determined that the nickel market will need to settle unaffected by a price limit for 4 (four) consecutive days, and for the daily volume on the 3m forward LME contract (LMNIDS03 LME Comdty) to exceed 10,000 lots for each of those days prior to lifting the Commodity Disruption Event. Should these conditions fail to materialize by April 18, 2022, Societe Generale will host a new committee to reassess the situation.

UPDATE: The conditions for the re-inclusion of nickel have not been met and the Index Sponsor has determined to extend the exclusion of nickel. The Index Sponsor will reassess the situation on July 17, 2022.