Critical mass reached in iron ore swaps market as traders boost liquidity
Falling iron ore prices are ramping up market liquidity to the extent that hedge funds are entering the market as a China proxy
Traders have been the driving force behind the record iron ore swaps volumes seen since the end of the second quarter, as market participants believe liquidity levels are now sufficient to entice more end-users, producers and hedge funds to participate in the derivatives market.
The Singapore Exchange (SGX), the dominant global platform for clearing iron ore swaps contracts, has posted record monthly volumes in three of the four months since May. Trades cleared in August reached 29,763 contracts
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Metals
Interview: Can Matthew Chamberlain rescue the LME?
London Metal Exchange CEO identifies problems, awaits contract and fee structure revamp feedback
Base metals dealer of the year: BNP Paribas
French bank expands hedging and finance solutions to mainland China
Asia precious metals house of the year: Citi
Citi builds full-service Asia strategy as others exit market
LME Clear ‘welcomes scrutiny’ of CCP risk management
Oversight from clearing members is good for central counterparties, says LME Clear CEO
Metals house of the year: SG CIB
Barclays and Jefferies Bache deals highlight bank’s commitment to metals
Metals traders shun clearing due to Emir, says LME chief
Emir segregated accounts pushing firms to trade OTC, says Jones
LME eyes Asian growth while dealing with regulation
Garry Jones on China, warehouses, clearing and financial regulation
Energy Risk Asia Precious Metals House of the Year: ANZ
ANZ connecting physical players with reach and structuring ability
