LONDON Growing Chinese
interest in the ferrous derivatives arena is driving iron ore
futures screen trading, Martin Evans, CME Group Inc.s
director of metals products, told AMM sister
publication Steel First in an interview May 16.
CME Group launched an iron ore
futures contract on its Globex electronic trading platform May
12, with five contracts trading since then.
"We are seeing growing interest
in trading from the Chinese market," Evans said. "They want to
see pricing happening on a screen."
Chinese market participants
across the supply chain, from steel mills to individual
traders, are looking to enter the ferrous derivatives
CME Group, the largest operator
of U.S. futures exchanges, has made the transition to Globex
for iron ore futures in response to feedback from the Chinese
market, Evans said.
"To grow this market, you need
to meet the needs of new trading partners," he said, adding
that the move would promote liquidity in the Asian markets and
among U.S. and European funds and private equity market
The iron ore derivatives arena
has largely been a voice-brokered market since it launched in
2008, although some major brokerages, such as GFI Group Inc.,
New York, have their own in-house electronic trading
The Singapore Mercantile
Exchange (SMX) launched a screen-traded iron ore futures
contract in 2011, but it failed to gain traction compared with
the cleared iron ore swaps contract offered by the Singapore
Exchange (SGX), which clears around 90 percent of globally
traded iron ore swaps.
Volumes of iron ore derivatives
cleared by the SGX have rocketed to an average of more than 16
million tonnes per month in the first four months of this
A version of this article
was first published by AMM sister publication Steel