Traders in the physical and fertilizer (Ferts) swap markets have given concerted backing to the price discovery screen released on 2nd June by Cleartrade Exchange Pte Ltd.
Some 100 traders active in the US, Middle East, European and Asian markets have already downloaded the screen to view swap prices, updated in real-time by a combination of firm and indicative, principal and broker initiated bids and offers. FIS brokers have given their full backing, as the 1st main live broker on Cleartrade Exchange, to driving liquidity and are representing tight bid/ask spreads for all contract forward curves.
The screen allows traders to track market prices across six contracts in the Nitrogen (Urea & UAN) and phosphate (DAP) markets. FIS customers who start with view-only can also apply to upgrade to a live tradable Cleartrade Exchange screen, which allows them to hit and lift bids and offers in the market and execute trades for clearing.
Cleartrade Exchange, the global electronic venue for cleared commodity swaps, launched its price discovery screen on 2nd June 2011 with FIS clients able to access the service through a simple download.
Since then, FIS Ferts brokers have reported growing interest, reflecting the need for a better view of price movements in the nearby and deferred periods, as the physical market continues to show extreme volatility.
Ron Foxon, senior FIS Ferts broker, said: “We had anticipated a strong response to the screen release and to judge by the reaction so far I’d say it has exceeded our expectations. The Ferts market needs to see live prices updated in real-time and there are new players coming in – particularly from the grains trade – who see the benefit of a clear view of swaps market activity.”
The Cleartrade Exchange screen provides traders world-wide with an instant snapshot of bids and offers circulating in the forward fertilizer market.
Karina Albers, Market Development Director at Cleartrade Exchange, said: “Increasing price transparency and liquidity in the fertilizer swaps market through the introduction of the price discovery screen was a founding goal of Cleartrade Exchange. We are live now with Ferts, freight and iron ore swap prices and we will continue to refine the portfolio, adding new commodities, such as containers and steel, which have huge latent demand.”
The Cleartrade Exchange screen is available free in view-only mode and can be accessed via a simple download.
The Cleartrade Exchange screen is the first fully-regulated and cleared trading screen to deploy in the global fertilizer market, which had an estimated turnover in excess of $500bn in 2010, during which more than 1bn tonnes of raw materials and products were traded.
