SGX Clears First AsiaClear Iron Ore Futures Trades

SGX is pleased to announce its first SGX AsiaClear Iron Ore Futures trades done on 24 April 2013.  The two trades with a total of 200 lots (20,000 mt) involving Barclays Bank, Deustche Bank and Trafigura and brokered by Freight Investor Services and London Commodity Brokers, were matched and cleared using SGX’s block trade facility known as Negotiated Large Trades (NLTs).
 
As market leader for iron ore derivatives, SGX has been working closely with global market participants operating under different regulatory regimes to introduce products that meet their iron ore risk management needs and those of their clients.
 
The SGX AsiaClear Iron Ore Futures contract is fully fungible with the SGX Iron Ore Swap contract.  Customers with offsetting positions in swap and futures will enjoy margin offset.  This multi-instrument model limits any fragmentation of liquidity for the iron ore derivatives market.
 
In addition to swap and futures contracts, the SGX AsiaClear Iron Ore Option contracts introduced in September 2012 have also received strong support from market participants.  Close to 10,000 lots (4.98 million mt) of SGX Iron Ore Option contracts were cleared in 2013 so far, accounting for more than 75% of the global market.  Open interest also reached a high of 9,154 lots (4.6 million mt) on 24 April 2013, representing 54% of the global market.  This attests to SGX being the main clearing venue for iron ore derivatives.
 
Customers who clear iron ore futures, swap and option positions in the same clearing account with an SGX Clearing Member also enjoy portfolio margin savings.
 
Singapore Iron Ore Week from 6 to 9 May
 
SGX is pleased to host the 2013 Singapore Iron Ore Week from 6 to 9 May under the support of the International Enterprise Singapore. The Singapore Iron Ore Week offers a week-long of events focused on the discussion of key topics by authoritative leaders in the iron ore and steel industry. It is also an international networking platform for industry players and market participants to exchange best practices and forge new business opportunities.  Don’t miss the opportunity to be part of this inaugural event! For more details, visit www.ironoreweek.sg