Singapore Exchange (“SGX”) today successfully launched its new OTC Options suite for SGX Iron Ore and SGX Forward Freight Agreements (FFA).
The SGX OTC Options* complement the thriving SGX Iron Ore and FFA product suite and provide customers with a comprehensive suite of instruments for hedging, trading, and credit risk mitigation. Just as importantly, SGX customers are able to efficiently clear their portfolio of commodities swaps and options with a single clearing house, and enjoy the benefit of margin offsets between options and the underlying swaps.
All option trades cleared from 10 September 2012 to 31 October 2012 will receive a 100% SGX clearing fee rebate. Active iron ore options customers who clear at least 500 lots of options during the above period will also receive fee rebates on their underlying iron ore swaps.
SGX is the acknowledged global market leader for Iron Ore swaps clearing, accounting for over 90% of all volume. A record monthly high was set in August 2012 of 14.88 million metric tonnes, and an all-time high was also set for month-end open interest of 9.18 million metric tonnes.