Iron Ore

NOS Clearing ASA launched a clearing service for Iron Ore futures and options contracts 1st November 2010. The NOS service is a neutral clearing service open to all brokers and regulated marketplaces. You may trade cleared Iron Ore swaps through all of the main OTC brokers.

Iron Ore futures and option contracts are a natural extension to the NOS cleared freight platform. The contracts launched by NOS for Iron Ore is CFR China, 62% Fe Fines, delivered Chinese Port and the contracts is settled against The Steel Index (TSI). The futures contract is monthly cash settled and the option contract is a monthly cash settled Asian style option.

For the existing NOS members no additional agreements are required to get started with Iron Ore and the contracts are cleared on the Freight platform. Contracts can be cleared either through the Direct Clearing Membership with NOS or through one of our General Clearing Members (GCM). You can find the list of members here.

By offering cleared Iron Ore derivatives, NOS offers an effective hedging tool to the steel mills, producers, shipping industry and the trading companies as well as trading opportunities to financial investors. Clearing gives several positive effects on risk management and operations:
 

• Guaranteed delivery, extremely low credit risk
• Elimination of credit assessment of counterparties and valuation of receivables
• Effective book-keeping, single counterparty, single account, single cashflow, all reports and risk management control through systems offered by NOS
• Anonymous trading
• Effective pricing, financial investors prefer cleared markets