Singapore Exchange (“SGX”) Iron Ore Swaps clocked in another record achievement in July 2012 with an outstanding volume cleared. These swaps also captured a high open interest record reflecting the breadth, depth and authenticity of market participation in SGX.
Just in the first 7 months of 2012, a total of 85,870 lots (42.9M tonnes) of SGX Iron Ore Swaps were cleared, as compared to a full 12-months volume of 86,611 lots in 2011. Year-to-date volumes are 145% higher than the same period last year.
Similarly, FFA Swaps also achieved commendable results with year-to-date cleared volume of 64,723 lots, 31% higher than the same period last year.
With up to almost 50% margin offsets between Iron Ore and FFA swaps, market participants can look forward to greater efficiencies when clearing both swaps on SGX.
In the coming months, SGX will extend its clearing service to options on FFA and Iron Ore swaps. These will provide market participants with more choices to achieve greater trading flexibility and significant margin efficiencies. More details will be provided as they are available.