In order to give clients and member firms more time to prepare for the new product, the Singapore Exchange plans to postpone the launch of futures contracts including iron ore and freight from February 25 to April 8.
SGX said that it cleared a record 18.2 million tonne of iron ore swaps in January trumping an earlier record set in September.The exchange clears over 90 percent of globally traded iron ore swaps.
Postponing the date would facilitate member firms to prepare their trading and clearing support including conducting necessary systems testing, the exchange feels.
The iron ore futures contracts will allow SGX to keep and attract more US clients faced with tougher rules on trading over-the-counter derivatives such as swaps.
The exchange earlier said that the US Commodities and Futures Trading Commission had allowed it to continue clearing iron ore swaps for US clients while in the process of registering with the regulatory body as a derivatives clearing organisation.
Under Washington’s Dodd-Frank Act the CFTC requires all clearing houses that clear swaps for US customers to be registered with the regulator.
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