SINGAPORE Feb 22 The Singapore Exchange has
pushed to April the launch of its iron ore futures contract, to
give clients and member firms more time to prepare for the new
product, the exchange said on Friday.
SGX, which clears more than 90 percent of globally traded
iron ore swaps, had earlier planned to launch futures contracts,
including iron ore and freight, on Feb. 25. It is now
considering April 8 as the date.
"This will provide member firms sufficient time to prepare
their trading and clearing support, including conducting
necessary systems testing," the exchange said in a statement.
The iron ore futures contracts will allow SGX to keep and
attract more U.S. clients faced with tougher rules on trading
over-the-counter derivatives such as swaps.
The exchange earlier said the U.S. Commodities and Futures
Trading Commission had allowed it to continue clearing iron ore
swaps for U.S clients while in the process of registering with
the regulatory body as a derivatives clearing organisation.
Under Washington's Dodd-Frank Act, the CFTC requires all
clearing houses that clear swaps for U.S. customers to be
registered with the regulator.
SGX said it cleared a record 18.2 million tonnes of iron ore
swaps in January, trumping an earlier record set in September.
(Reporting by Manolo Serapio Jr.; Editing by Clarence