- Contract Specifications
- Execution Fee
Iron ore is one of the biggest dry bulk commodities traded and shipped by volume. Iron Ore has traditionally been a physical market with annual benchmark pricing, however, the emergence of China as a major commodities player and increased global economic volatility has seen the annual pricing system breakdown and the market evolve towards spot trading and index-based trading.
The growth of spot trading and index-based trading in this huge market presents an opportunity for banks, traders, producers and consumers to manage price risk and exposure. In turn, the derivatives sector is now set for an explosive growth as players seek hedging tools to minimize risk from increasingly volatile prices.
Although still in an embryonic stage and the volumes are still substantially lower than the physical market, the year-on-year increase in the derivatives volume since the launch of these iron ore derivatives has been particularly encouraging and many expect the derivatives market to overtake the physical market volume in the near future.
Iron Ore Futures: Contract Specifications Iron Ore (62%) Fe: T62 Index Provider The Steel Index (TSI) Lot Size LCH, NDQ: 1,000 Metric Tonnes
SGX: 500 Metric Tonnes
Currency US Dollar Minimum Tick USD 0.01 Forward Curve In respect of daily settlement, it will be the end of day price as supplied by approved OTC Brokers. In respect of final settlement, the floating price will be the arithmetic average of all the daily The Steel Index (TSI) indices for that month Contract Series Months, quarters and calendar years out to a maximum of 60 months Expiry Last publication day of the relevant index in the contract month. Settlement Last UK business day of the contract month Clearing House LCH, NDQ, SGX
Trader Membership Fee Free Screen User Fee Free Fee Basis Per Metric Tonne Fee Value US Dollar Volume (mt/month) Effective Rate 0 – 100,000 $0.030 100,001 – 250,000 $0.020 More than 250,000 $0.015
*General Terms of business
1) CLTX reserves the right to modify prices
2) Prices published serves as a point of reference and fees may vary across different market participants.