ICAP Energy leads the way in new Iron Ore derivatives contract
Singapore/London/New York, 25 March 2015 – ICAP Energy, the energy business of ICAP plc, announces today that it has successfully traded a newly launched lower-grade iron ore derivatives contract on the Singapore Exchange (SGX). The SGX 58% FE Metal Bulletin index was launched on 9 March and ICAP Energy was one of the first brokers to execute a trade on the launch day.
The trade occurred between one of ICAP Energy’s international commodity trading house clients and a Chinese steel mill. The April contract was traded at $49 per tonne cfr for 20,000 tonnes, with a spread of $8 per tonne against the TSI 62% FE index. This transaction makes ICAP Energy one of the pioneers of this product and at the forefront of iron ore market development.
Alex Newman, Head of Coal & Iron Ore, ICAP Energy, Asia Pacific, said: “We welcome the launch of the 58% Metal Bulletin FE index which reflects changes to the physical supply and demand landscape. We believe this product will offer participants the opportunity to better manage their quality basis spread, while also enabling others to express their iron ore pricing expectations in a wider and more accurate context".
The SGX offers clearing services for two 58% FE iron ore derivatives contracts. The swaps and futures contracts are cash-settled against either Metal Bulletin’s 58% FE Premium Index or TSI’s 58% FE iron ore index.
|Jasmine Yap||Citigate Dewe Rogerson (Asia)||+852 3103 0108|
|Theresa Tang||Citigate Dewe Rogerson (Asia)||+852 3103 0111|
|Bryony Scragg||ICAP Communications UK||+44 (0) 20 7050 7124|
|Guy Taylor||ICAP Communications US||+1 201-469-5319|
About ICAP Energy
ICAP Energy, a subsidiary of ICAP plc, is an innovative leader in the energy and commodities industries, providing full-service and over-the-counter broking and advisory capabilities to a broad spectrum of businesses throughout the world. The group has approximately 300 employees located in London, North America, Singapore, Sydney, Geneva, Bergen, Amsterdam and Madrid. ICAP Energy offers real-time price discovery and execution services in crude oil and oil products, biofuels, agriculture and softs, precious metals, iron ore, electricity, natural gas, coal, emissions, freight and physical products. For more information go to www.icapenergy.com.
ICAP is a leading markets operator and provider of post trade risk and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com.