HONG KONG (Reuters) - The Hong Kong stock exchange plans to launch a U.S. dollar-denominated, cash-settled iron ore futures contract in Hong Kong, it said on Wednesday, as the bourse aims to compete with U.S. and Asian rivals.
The launch is tentatively set for November, subject to market readiness.
The iron ore contract will be its first ferrous metal product and will complement its existing precious and base metals products, the Hong Kong Exchanges and Clearing Ltd (HKEx)(0388.HK) said in a statement.
“With the benefits of electronic trading, our planned Iron Ore Futures will provide a transparent and efficient risk management and investment tool for physical and financial users who want to hedge their price risk or gain exposure in iron ore,” said Li Gang, HKEX’s co-head of market development.
Reporting by Twinnie Siu; Editing by Adrian Croft; firstname.lastname@example.org; 852-2841 5763; Reuters Messaging: email@example.com