LONDON, Feb. 8 /PRNewswire-FirstCall/ -- IntercontinentalExchange, Inc. (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced the first cleared trades of its Platts Iron Ore 62% IODEX swap contract.
The first cleared transactions were submitted to ICE Clear U.S. on 5 February 2010 by London Dry Bulk Ltd. on behalf of Cargill and an additional counterparty. ICE introduced the cleared Platts IODEX swap contract in December 2009.
"ICE's cleared Platts IODEX swap was designed to meet the requirements of participants in the iron ore and steel industries, and complements our benchmark contracts for coal and emissions," said Mike Davis, Director of Market Development, ICE Futures Europe. "We're delighted to see acceptance of our model for clearing iron ore swaps to reduce counterparty risk. We will continue to work closely with our customers and brokerage firms to support liquidity in this important market."
Iron ore is the primary raw material used in the production of steel and the world's second largest commodity by value, after crude oil. Because iron ore has historically traded under long-term fixed price contracts between steel mills and mining companies, iron ore is the world's largest commodity without a significant derivatives market.
The Platts Iron Ore 62% IODEX swap contract is based upon the most commonly traded grade of iron ore, referencing 62% Fe content delivered by sea to north China (Qingdao). The contract is cash settled against a daily index price published in Platts Metals Alert (PMA) under the heading 'IODEX: Iron Ore fines 62% Fe CFR North China'.
For questions about the ICE Platts Iron Ore 62% IODEX swap, please contact Jennifer Ilkiw (Singapore) +65 6 594 0160, jennifer.ilkiw@theice.com or Mike Davis (UK) +44 20 7065 7753, mike.davis@theice.com.
