Reuters reported that the Singapore Exchange wants to set up iron ore futures in January in an effort to keep and attract clients from the U.S. who are dealing with stringent rules in trading OTC derivatives
As quoted in the market news:
“The plan by SGX, which clears bulk of globally traded iron ore swaps, shows how exchanges outside the United States are trying to ensure Washington’s regulatory net over the world’s $640 trillion OTC market does not dent their U.S. client base.
“Although the U.S. clients remain a small part of SGX’s swaps business, I believe it wants to make the new product available to them so as not to lose market share,” said an industry source with knowledge of the plan.
The futures contract, which will also be cash-settled like the swaps, may be launched in late January.”