HKEX plans iron ore futures contract, targets November roll-
- Source: chemnet
Kong Exchanges and Clearing plans to introduce a cash-settled iron ore
futures contract, with roll-out tentatively set for November this
year, "subject to market readiness," the exchange group said Wednesday.
contract, settled against the TSI Iron Ore FE 62% Fe CFR Tianjin Index
provided by S&P Global Platts, will be HKEX's first ferrous metals
product and will complement its existing precious and base metals
products, the company said.
London Metal Exchange, a subsidiary of HKEX, already has cash-settled
ferrous scrap and rebar contacts which settle against Platts/TSI indices.
the benefits of electronic trading, our planned iron ore futures will
provide a transparent and efficient risk management and investment
tool for physical and financial users who want to hedge their price
risk or gain exposure in iron ore," said Li Gang, HKEX's co-head
of market development, in a statement.
specifications for the new contract, which will trade both monthly and
quarterly, are as follows:
Size: 100 mt
Currency: US dollars
Quotation: US dollars and cents per mt
Months (Monthly): Spot month and the next 23 calendar months
Months (Quarterly): Spot quarter and next seven calendar quarters
Fluctuation: $0.01/mt (no maximum fluctuation)
Hours (HK time): 9:00 am to 4:30 pm (day trading session) and 5:15 pm
to 1:00 am (after-hours trading session)
final settlement price of the monthly contract will be the
arithmetical average of all TSI Iron Ore Fines 62% Fe CFR China Index
values published in that contract month, rounded to two decimal
places; the quarterly contract will settle against the arithmetical
average of the final settlement prices of the three corresponding
monthly contracts in that contract quarter, rounded to two decimal places.