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Dalian Commodity Exchange (DCE) and the Bank of China (BOC) hold the Iron Ore Futures Forum in Singapore on November 7. Over 50 representatives from China Securities Regulatory Commission, relevant industrial enterprises and financial institutions take part and engage in an in-depth exchange.
DCE Party Chief and Chairman Li Zhengqiang says at the forum that overseas clients have actively participated in the iron ore futures since its internationalization on May 4, 2018, making the price-forming mechanism more reasonable. The recognition on futures prices keep increasing, and the basis trading with iron ore futures price as the benchmark has been gradually conducted. With the continuously developed internationalization business, it is believed that more and more overseas clients will take part in iron ore futures trading. Next, DCE will improve contract rules, list iron ore options, promote basis trading, explore to provide the global market with open, fair and justice futures prices, and strive to build an important iron ore international pricing center and risk management center in the world.
A DCE staff introduces the operation of iron ore futures and the preparation for iron ore options and a BOC staff introduces the operation of its derivatives business. The present guests engage in an in-depth discussion on the operation of iron ore futures and spot markets, the improvement of iron ore options contracts, and the development of local and regional markets. Some guests believe that the opening-up of DCE’s iron ore futures has provided overseas traders with an opportunity of directly involving in the Chinese futures market, helped to form a new pricing mode for iron ore international trade, and offered a more optimized trade pricing and risk-avoiding instrument for industrial institutions and relevant financial institutions.
It is learnt that overseas traders, especially traders in Singapore, have actively taken part in iron ore futures trading since its internationalization, and the market structure has kept optimizing. Till the end of October, over 170 overseas clients from 15 countries and regions have opened accounts, among which 20% are from Singapore.
