ICEX selects TSI’s iron ore index
Mumbai-based Indian Commodity Exchange (ICEX) this week launched India’s first iron ore futures contract using The Steel Index (TSI)'s iron ore reference price for settlement. It becomes the fifth major exchange/clearing house in the world to use TSI’s iron ore index.
“We are delighted ICEX has selected TSI’s iron ore index,” says Steven Randall, Managing Director of TSI. “India is the world’s third largest producer of iron ore and exported over 115 million tonnes in 2010, largely to China. It is excellent to see ICEX lead the way in the Indian financial markets, offering industry participants the hedging tools they need to manage today’s market price uncertainty," he comments.
Rory MacDonald, Head of TSI’s Iron Ore Operations, adds: “Momentum is building strongly in the iron ore derivatives market at the moment, so ICEX’s timing is excellent. Over US$3 billion of iron ore forward contracts were cleared in 2010 and January 2011 saw the highest volume of iron ore swaps cleared in a single month to date, with over 2.62 million tonnes (US$470 million) passing through the Singapore Exchange (SGX) and London-based LCH.Clearnet alone, all settled using TSI.”
ICEX’s contract lot size is 100 metric tonnes and quoted in Indian Rupees. Contracts are cash-settled using TSI’s daily 62% Fe, 3.5% alumina iron ore reference prices. The monthly expiry contracts will start from 31 March 2011.
Ashwani Sondhi, Director at ICEX, comments: “ICEX’s iron ore contract will set the benchmark for iron ore futures trading across global markets.”
In selecting TSI for its iron ore contract, ICEX follows in the footsteps of the SGX, which launched the world’s first iron ore swap clearing service on 27 April 2009, London-based LCH.Clearnet, Chicago-based CME Group and Oslo-based NOS Clearing which began trading on 1 June 2009, 11 July 2010 and 1 November 2010 respectively.
TSI’s daily iron ore reference prices have won widespread industry support for their accuracy and the rigorous, verifiable methodology used. Its prices are based on transaction data submitted by industry participants throughout the supply chain directly to TSI, via secure on-line systems.
Mumbai-based Indian Commodity Exchange (ICEX) this week launched India’s first iron ore futures contract using The Steel Index (TSI)'s iron ore reference price for settlement. It becomes the fifth major exchange/clearing house in the world to use TSI’s iron ore index.
“We are delighted ICEX has selected TSI’s iron ore index,” says Steven Randall, Managing Director of TSI. “India is the world’s third largest producer of iron ore and exported over 115 million tonnes in 2010, largely to China. It is excellent to see ICEX lead the way in the Indian financial markets, offering industry participants the hedging tools they need to manage today’s market price uncertainty," he comments.
Rory MacDonald, Head of TSI’s Iron Ore Operations, adds: “Momentum is building strongly in the iron ore derivatives market at the moment, so ICEX’s timing is excellent. Over US$3 billion of iron ore forward contracts were cleared in 2010 and January 2011 saw the highest volume of iron ore swaps cleared in a single month to date, with over 2.62 million tonnes (US$470 million) passing through the Singapore Exchange (SGX) and London-based LCH.Clearnet alone, all settled using TSI.”
ICEX’s contract lot size is 100 metric tonnes and quoted in Indian Rupees. Contracts are cash-settled using TSI’s daily 62% Fe, 3.5% alumina iron ore reference prices. The monthly expiry contracts will start from 31 March 2011.
Ashwani Sondhi, Director at ICEX, comments: “ICEX’s iron ore contract will set the benchmark for iron ore futures trading across global markets.”
In selecting TSI for its iron ore contract, ICEX follows in the footsteps of the SGX, which launched the world’s first iron ore swap clearing service on 27 April 2009, London-based LCH.Clearnet, Chicago-based CME Group and Oslo-based NOS Clearing which began trading on 1 June 2009, 11 July 2010 and 1 November 2010 respectively.
TSI’s daily iron ore reference prices have won widespread industry support for their accuracy and the rigorous, verifiable methodology used. Its prices are based on transaction data submitted by industry participants throughout the supply chain directly to TSI, via secure on-line systems.
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