The Singapore Exchange plans to introduce an iron ore futures contract next month in a bid to retain and attract more US clients faced with tougher rules in trading over the counter derivatives
The plan by SGX, which clears the bulk of globally traded iron ore swaps, shows how exchanges outside the United States are trying to ensure Washington's regulatory net over the world's USD 640 trillion OTC market does not dent their US client base.
The report quoted an industry source with knowledge of the plan as saying that “Although the US clients remain a small part of SGX's swaps business, I believe it wants to make the new product available to them so as not to lose market share.”
The futures contract, which will also be cash-settled like the swaps, may be launched in late January.
