Singapore Exchange, CBMX develop iron ore market

Singapore Exchange (SGX) and China  Beijing  International Mining Exchange ( C B M X ) have  signed a memorandum of understanding (MOU) to cooperate in the development of both Chinese and international iron ore markets.

Under the MOU , both exchanges will jointly explore areas of  cooperation  including  product development, market development and information sharing. CBMX and SGX will also explore a medium-term roadmap towards improvement of interaction and risk-transfer between the spot and derivatives markets.

“As the only iron ore spot trading platform  in  China, we hope that through cooperation with SGX, we can promote the use of both the spot and derivatives platforms as trading and risk management tools. This will help iron ore market participants to achieve effective and  efficient interaction between the spot and financial derivatives markets”, said Mr Dong.

“Through this agreement, we continue to build on our commitment to expand the reach of our markets and clearing capabilities to Asia and globally. Closer collaboration between the  various  physical marketplaces and our  derivatives market sets an ideal foundation for growth. It also aligns our respective platforms more effectively to the benefit of all market participants. We look forward to working closely with CBMX,” said Mr Bocker.