SGX Iron Ore Swap Clearing

Overview

Iron ore is widely used in the world and it is one of the major bulk commodities transported by dry-bulk vessels from Australia, Brazil and India to China and Europe. Global demand for iron ore is expected to increase because of China's growing demand, which has virtually accounted for all the growth in the seaborne iron ore market.

In response to increasing industry participants interest and demand to trade and clear iron ore swap for price and credit risk mitigation, SGX AsiaClear developed in co-operation with the industry and launched the world's first OTC Iron Ore Swap Clearing on 27 April 2009.

Key Benefits

- Iron Ore Price Risk Mitigation

- Counterparty Credit Risk Mitigation

In OTC Iron Ore Swap trading, there are uncertainties surrounding the credit-worthiness of trading counterparties. By registering the OTC Iron Ore Swap contract for clearing with SGX, counterparty credit risk is mitigated as SGX becomes the central counterparty to both the buyer and seller. For more infomation on clearing, please visit www.asiaclear.com.sg/about/how.shtml.

Iron Ore Swap Contract Specifications

Daily Settlement Price (DSP) Information

Please email to ironore@sgx.com if you would like to be included in the email dissemination of the SGX Iron Ore Swap daily settlement prices.

Brochures and Information

1. Guide and Factsheet:

2. Iron Ore Swap Daily and Monthly Volume

News

For more information

Please contact Mr Tan Say Liang, SGX AsiaClear (Tel: +65-6236-5130, Email: sayliang.tan@sgx.com)

Disclaimer

This document is intended for general circulation and does not constitute an offer or solicitation to buy or sell any investment product(s). It does not take into account the specific investment objectives, financial situation or particular needs of any person. Investors should seek advice from a financial adviser before investing in any investment products or adopting any investment strategies. In the event that the investor chooses not to seek advice from a financial adviser, he/she should consider whether the product in question is suitable for him/her. The investment product(s) discussed herein are subject to significant investment risks, including the possible loss of the principal amount invested. Any examples provided are for illustrative purposes only. Past performance of investment products is not necessarily a guide to future performance. SGX and its affiliates may deal in investment products in the usual course of their business, and may at any given time be on the opposite side of trades by investors and market participants.

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