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在线翻译:
szdaily -> Markets -> 
HK, Singapore battle it out for iron ore
    2017-11-14  08:53    Shenzhen Daily

TWO of Asia’s financial heavyweights are going head-to-head as Hong Kong Exchanges & Clearing Ltd. (HKEX) starts futures for iron ore that has seen extraordinary volatility and been a popular way to bet on China, challenging Singapore Exchange Ltd.’s leading position.

HKEX began trading the futures yesterday, pitting the new dollar-denominated contract against those offered by Singapore Exchange Ltd. (SGX), which introduced its first swap contracts in 2009 and has become the world’s largest clearer of the derivatives.

To add firepower to the opening salvo, HKEX has promised newcomers all trading fees for the new product will be waived for six months.

Iron ore sits at the heart of the global economy, especially in largest user China, and the commodity has attracted growing investor interest in recent years.

The derivatives are used by miners and mills for hedging, as well as traders and funds, and Goldman Sachs Group Inc. found in an 2016 study that it was SGX’s product that probably swayed the global market, rather than the more restricted offering on the Dalian Commodity Exchange. Given the lead, the HKEX may find it a hard task to break out of its beachhead.

“They’re going up against a more established offshore contract in Singapore,” said Hui Heng Tan, an analyst at Marex Spectron.

“It’s too early to gauge whether the new contract will gain much traction. Some of that will depend on the terms they’re able to offer, such as trading fees and margins, as well as the liquidity of the contracts.”

The shakeup comes after miners and investors have been on wild ride. In 2013, iron ore fetched more than US$100 a metric ton. By 2015, it fell below US$40 as supplies swelled and investors expected China’s appetite to wane.

This year, it’s gyrated between almost US$95 and close to US$50 with China’s environmental clampdown in focus, along with booming supplies from Australia and Brazil.

That’s been a boon for SGX, where trading of iron ore derivatives jumped 59 percent last year. Among other global exchanges, CME Group Inc. and Intercontinental Exchange Inc. also offer products tracking the raw material.

While HKEX has been building up its presence in metals — buying up the iconic London Metal Exchange — the new offering is its first ferrous product. (SD-Agencies)

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