First ferrous metal product Iron Ore Futures debuts on HKEX


Hong Kong Exchanges and Clearing Limited‘s (HKEX) first ferrous metal product, cash-settled TSI Iron Ore Fines 62% FE CFR China Futures (Iron Ore Futures) started trading today, with total volume of 1,022 contracts, equivalent to 102,200 tonnes of iron ore, during the day trading session.

As an exchange-traded product, Iron Ore Futures aims to provide maximum price transparency and equal access to all market participants by improving the price discovery process in the iron ore derivatives market.

Liquidity Providers provided narrow continuous quotes of approximately 10 – 20 ticks (ie US$0.1 – 0.2 bid/ask spread) on screen throughout the day.

There was healthy and diverse participation from a broad range of market participants including physical trading firms, steel mills, commodity funds, financial institutions and professional investors from Asia, Europe and the Americas.

A total of 11 Exchange Participants traded the new contract today.

To encourage market participation and initial liquidity building, HKEX announced before rollout that there would be an Exchange Fee waiver and 100 per cent SFC Levy exemption during the first six months of trading.

Key Contract Specifications 

Monthly ContractsQuarterly Contracts
UnderlyingTSI Iron Ore Fines 62% Fe CFR China Index
Contract Size100 tonnes
Trading CurrencyUS dollars
Price QuotationUS dollars and cents per tonne
 Contract MonthsSpot Month and the next 23 calendar monthsSpot Quarter and next seven calendar quarters (calendar quarters are January to March, April to June, July to September and October to December)
 Minimum FluctuationUSD0.01 per tonne
 Maximum Fluctuation None
Trading Hours
(Hong Kong Time)
9:00 am to 4:30 pm (day trading session) and
5:15 pm to 1:00 am (after-hours trading session)
 Final Settlement PriceArithmetic average of all TSI Iron Ore Fines 62 per cent Fe CFR China Index values published in that Contract Month, rounded to 2 decimal placesArithmetic average of Final Settlement Prices of three corresponding Monthly Contracts in that Contract Quarter, rounded to 2 decimal places
 Last Trading DayLast Hong Kong Business Day of a calendar month that is not a Singapore public holidayLast Trading Day of the last Monthly Contract in the calendar quarter
Settlement MethodCash settled contract of difference

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First ferrous metal product Iron Ore Futures debuts on HKEX


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