Wednesday, September 29,
The Singapore Mercantile Exchange (SMX) today announced that it plans to list the world’s first Iron ore Futures contract.
It said the contract would be settled on the basis of Metal Bulletin Iron Ore Index, which is provided by Metal Bulletin, an independent information and price provider for the metal industries.
Commenting on the contract, SMX CEO Thomas J McMahon said: “It is especially strategic, given that China is the world’s largest importer of Iron ore. The futures market for Iron ore and Iron ore spot market have only recently begun to take shape and as such, both are in need of a firm reference-price mechanism. SMX is stepping into that space in the markets via a robust index upon which effective price hedging can be conducted with a strong measure of certainty.”
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