Specifications of SGX MB Iron Ore cfr China 65% Fe swaps, futures contracts

The Singapore Exchange (SGX) will launch high-grade iron ore swaps and futures contracts on December 3. Here is a summary of the contracts' specifications:

Name: SGX MB Iron Ore cfr China (65% Fe Fines) Swaps
Ticker symbol: M65
Contract size (one lot): 500 metric tonnes
Trading hours (Singapore time)*:
T session: 7.25am-8.00pm
T+1 session: 8.00.01pm-4.45am
Last trading day: 7.25am-8.00pm
Note: After the close of the T-session, there will be a 30-minute grace window for participants to continue registering T-session trades
Last trading day: Last publication day of the relevant Fastmarkets MB iron ore reference prices in the contract month.
Mode of settlement: Cash
Contract months: Up to 36 consecutive months starting January. Twelve consecutive months will be added upon expiry in December.
Final settlement methodology or delivery mechanism: Arithmetic average of all the Fastmarkets MB 65% Fe cfr China Index reference prices in the expiring contract month, rounded to two decimal places.
Minimum price fluctuation: $0.01 per metric tonne

Name: SGX MB iron Ore cfr China (65% Fe Fines) Index Futures
Ticker symbol: M65F
Contract size (one lot): 100 metric tonnes
Trading hours (Singapore time)*:
T session: 7.25am-8.00pm
T+1 session: 8.15pm- 4.45am
Last trading day: 7.25am-8.00pm
Note: After the close of the T-session, there will be a 30-minute grace window for participants to continue registering T-session trades.
Last trading day: Last publication day of the relevant Fastmarkets MB iron ore reference prices in the contract month.
Mode of settlement: Cash
Contract months: Up to 36 consecutive months starting January. Twelve consecutive months will be added upon expiry in December.
Final settlement methodology or delivery mechanism: Arithmetic average of all the Fastmarkets MB 65% Fe cfr China Index reference prices in the expiring contract month, rounded to two decimal places.
Minimum price fluctuation: $0.01 per metric tonne

*Every weekday except common holidays in Singapore and the United Kingdom.

Fastmarkets will be discussing the new SGX 65% Fe derivatives in a live webinar on December 11. Our team will examine how changes in the iron ore market have prompted the need for these contracts, the opportunities they offer and the methodology behind our iron ore index. Register here to join the webinar.

Deepali Sharma

deepali.sharma@fastmarkets.com

Published

Deepali Sharma

November 20, 2018

06:25 GMT

Singapore