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ICEX, IOSDA to launch Indian iron ore futures

BS Reporter  |  Mumbai 

(ICEX), the promoted trading platform, has signed a memorandum of understanding (MoU) with Singapore-based Association (IOSDA). Under the agreement, will promote iron ore and on ICEX, as and when these contracts are launched.

ICEX and will jointly work towards spreading the awareness iron ore as a mineral and its related activity, among various stakeholders and all such connected participants of the ecosystem. “Both the organizations have made significant progress within their own areas for the growth and development of the (IOF) market and are now willing to enter into a MoU to mutually share their knowledge and expertise for the fur5666666ther development and advantage of the industry,” said Ashwani Sondhi, director of ICEX.

It is interesting to note that ICEX has already initiated the process of regulatory approval to launch the IOF contract for the first time in the country. It will be the world’s first IOF contract whereby miners, processors, traders and importers can participate in the futures

“The is well established in the country and there is a need for establishing risk management tools for the industry for which our exchange has made the pioneering steps,” Sondhi said.

"The revolution in the iron ore pricing system has opened the door for the use of financial tools which can better manage price risk. Interest in and the use of these tools are growing as buyers and sellers come to understand their potential," said Pedro Coatait, secretary,

Singapore based IOSDA is an independent organisation for producers, brokers bankers, exchanges and act in the best interests of its members for the benefit of the market place in which its members transact in the iron ore and related derivatives worldwide.

In September this year, ICEX had also joined hands with the Federation of Indian Mineral Industries (FIMI), for promoting the development of an efficient IOF market in the country. Under the pact, both will share knowledge and expertise in this regard, besides establishing risk management tools for the industry.

First Published: Mon, November 08 2010. 12:54 IST