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Dalian Commodity Exchange (DCE) was approved to be an ATS (Automated Trading Service) provider by the Hong Kong Securities and Futures Commission (SFC) on May 16, and it is thus able to promote its iron ore futures trading among Hong Kong traders. Market participants believed that this will help to enhance the influence of iron ore futures market in Hong Kong.
The international business of iron ore futures has realized a smooth start since its ushering-in of overseas traders on May 4. The trading position size and the market liquidity have maintained at a good level, and the futures price has effectively reflected the changes in the fundamentals of supply and demand. As the largest iron ore derivatives market in the world, DCE’s iron ore futures business has attracted the attention and participation of overseas industry clients and investment institutions. Hong Kong, as an international financial, trading and shipping center, has gathered the resources and talents of relevant industries from across the world, and it has been active in iron ore futures trading. Till May 17, a total of 73 overseas clients have opened an account, and a total of 51 overseas clients have taken part in iron ore futures trading, among which Hong Kong traders account for a large proportion.
A DCE official says that obtaining the Hong Kong ATS license marks an important step forward to expand the international business of iron ore futures, and it will provide a convenient and legal way to promote relevant business to Hong Kong traders. DCE will actively implemented the overseas marketing scheme of iron ore futures, strengthen the overseas regulatory institutions and market participants’ understanding on the futures market rules of China’s mainland, and enhance the participating enthusiasm of overseas traders, thus laying a solid foundation for the continuous development of the international business of iron ore futures.
The official adds that, on the basis of fully summarizing the experience of the internalization of iron ore futures, DCE will steadily promote the opening-up of more futures products and form open and transparent futures price benchmark with global representativeness in more fields, thus offering thorough and effective pricing and risk-avoiding instruments for relevant industry clients in the world.
