Cocoa Falls as Traders Assess Exchange Policy to Curb Volatility

  • Threshold for when traders need to disclose details will lower
  • New policy announced by ICE Europe will be effective Monday

A farmer attends to cocoa beans drying on a rack at a farm in Kwabeng, Ghana.

Photographer: Paul Ninson/Bloomberg
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Cocoa dropped to the lowest in more than a week as traders reassess their positions after Intercontinental Exchange Inc. took steps to tame market volatility.

The most-active contract fell as much as 4.8% in London. ICE Futures Europe on Tuesday lowered the contract’s so-called accountability levels, the threshold for when traders need to disclose more information about their positions. The new policy takes effect Jan. 13.