The Trade Registration service offered by EEX in cooperation with CLTX allows the steel industry to manage price risks in a dynamic market. Additionally, clients benefit from the fast and efficient clearing services provided by European Commodity Clearing.
"Industry participants are able to hedge
their risk through Trade Registration
and clearing via ECC. Index-based
pricing offers a sustainable mechanism
suited to the challenges of today’s
Rob Palmer, Key Account Manager Sales Coal, Clearing & ISVs
Iron Ore Futures
The emergence of China as the dominating market player in the physical global iron ore market brought a fundamental shift. Volatility on the spot market has multiplied over the last years and the usage of annual benchmark prices was replaced by more short-term and index-based trading. Consequently, for all stakeholders in the supply chain, the importance and necessity to hedge against unfavorable price movements on the derivatives market has increased.
The trade registration service which EEX offers in cooperation with Cleartrade Exchange (CLTX), allows the steel industry to manage price risks in a dynamic market. Additionally, clients benefit from the fast and efficient clearing services provided by European Commodity Clearing (ECC), Europe’s leading clearing house for energy products, which also provides a range of margin offsets with other commodities across several exchanges.
Advantages for traders
- Access to more than 450 trading participants from 33 countries worldwide
- Cash settlement against benchmark price indices as published by “The Steel Index”
- Safe clearing and settlement via the ECC clearing house
- Straight-Through Processing (STP) of registered trades via EFETnet eXRP and Trayport “Hosted Clearing Link”
- Hedging of transportation costs for metals via freight products possible
- Registration and clearing of futures contracts instead of swaps
- Trades registered on a regulated market will not be considered for the EMIR clearing threshold
- Trading participants benefit from Cross-Margining between Iron Ore and other commodities
- Post-trade services offered by ECC such as EMIR Trade Reporting
The following financially settled Iron Ore products are available for Trade Registration:
- Iron Ore 62% Fe CFR Tianjin (TSI) Futures – The Steel Index*
At a glance
The current and next 35 months
100 metric tons;
0.01 USD per metric ton
* The TSI Iron Ore Fines 62% Fe, CFR Tianjin Port (“PLATTS Index”) is a product of PLATTS, a Division of McGraw Hill Financial, Inc., and has been licensed for use by European Energy Exchange AG (the Exchange”). “Platts”, “TSI” and “The Steel Index” (the “PLATTS Marks”) are trademarks of PLATTS, its affiliates and/or its licensors and have been licensed for use by the Exchange. Iron Ore 62% Fe Tianjin Futures (“Exchange Contract”) is not sponsored, endorsed, sold or promoted by PLATTS or its affiliates or licensors. PLATTS, its affiliates and licensors make no representation or warranty, express or implied, regarding Exchange Contract or regarding the advisability of investing in securities or commodities generally or the ability of the PLATTS Index to track general market performance or commodity price movements, nor do they have any liability for any errors or omissions in, or interruptions of, the PLATTS Index or Exchange Contract. PLATTS's, its affiliates’ and licensors’ only relationship to the Exchange with respect to the PLATTS Index is the licensing of the PLATTS Index and of certain trademarks, service marks and/or trade names of PLATTS, and/or its affiliates or licensors. The PLATTS Index is determined, composed and calculated by PLATTS without regard to the Exchange or the Exchange Contract. PLATTS, its affiliates and licensors have no obligation to take the needs of the Exchange or any clients or users of the Exchange Contract into consideration in determining, composing or calculating the PLATTS Index. PLATTS, its affiliates and licensors have no obligation or liability in connection with the creation, development, preparation, marketing, sale and/or trading of the Exchange Contract.
PLATTS, ITS AFFILIATES AND LICENSORS DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE PLATTS INDEX OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. PLATTS, ITS AFFILIATES AND LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN. PLATTS, ITS AFFILIATES AND LICENSORS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY THE EXCHANGE, CLIENTS OR USERS OF THE EXCHANGE CONTRACT, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE PLATTS INDEX OR EXCHANGE CONTRACT OR WITH RESPECT TO THE PLATTS MARKS, THE PLATTS INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL PLATTS, ITS AFFILIATES AND/OR ITS THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.
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