With Cleartrade Exchange trades can be combined across the different product types, saving clients as much as 40% in cross-margining fees at the clearing house. It also facilitates live block trading, full straight-through processing (STP) and risk management reporting to give users a new, sophisticated but simple solution for derivatives trading.
On 5th May Cleartrade Exchange, together with Drewry, launched the World Container Index (WCI), a global index used by physical and derivatives market participants to manage freight risk. Following this launch the next product group to be added to the Cleartrade Exchange will be the emerging market in container freight swaps, settled against the WCI, covering physical routes on Trans-Atlantic, Trans-Pacific and Asia-Europe trades.
Freight, iron ore, steel, and fertilizer markets
- Freight derivatives volumes have improved this quarter; with prices set for more volatility, the time is right to accelerate the deployment of additional commodities on the Cleartrade Exchange platform, offering economies of scale and significant cross-commodity trade opportunities for members.
- Iron ore swaps are on course to hit a new record for volumes traded of 100 million tonnes this year. The price for iron ore delivered into China recently peaked at close to $185 per tonne, more than 50% higher than last summer.
- China’s crude steel production continues to rise, with output in the first ten days of May hitting a new record of just under 1.95 million tonnes per day.
- Price volatility in the fertilizer market has seen the Fob Egypt Urea price per tonne almost double from $233/tonne in May 2010 to $437/tonne May 2011.
For access to the Cleartrade Exchange market-discovery screen professionals should contact membership@thecleartrade.com
