Singapore exchange MB Iron Ore CFR China swaps and futures

Singapore Exchange (SGX) launched the world’s first high-grade iron ore derivatives on 3 December 2018 to meet demand for new risk-management tools amid a structural shift in China's environmental policy.

The SGX MB Iron Ore CFR China swaps and futures, designed in close consultation with market participants, reference the 65% Fe Brazilian fines index, CFR Qingdao, provided by Fastmarkets MB. China’s pursuit of environmentally friendly growth is spurring increased use of premium iron ore for steelmaking in the country, the world’s largest consumer of commodities.

Complementing SGX’s bellwether 62% Fe derivatives, the new contracts will add vibrancy to the highly liquid and sophisticated global iron ore market that is attracting a growing pool of institutional investors.

As the physical market evolves along different specifications, this launch offers participants the opportunity to trade grade differentials and manage widening basis risks.

[1] Source: SGX News Release, 03 Dec 2018

 

CONTRACT SPECIFICATIONS

Source: Singapore Exchange


 

KGI Securities (Singapore) will offer this product to our clients.
To find out more, contact us via:

E-MAIL WHATSAPP
 

This advertisement has not been reviewed by the Monetary Authority of Singapore.


Begin your trading journey now