Dalian Commodity Exchange (“DCE”) today opened its doors to allow market participants based outside of China to access and trade its Iron Ore Futures Contract, which was formerly restricted to domestic Chinese investors. This marks the second international commodities futures contract that is priced in Chinese Yuan, after the launch of Shanghai International Energy Exchange’s (“INE”) Crude Oil Futures Contract earlier this March, revving up the internationalization of commodity futures in China and the renminbi. China is the largest consumer for iron ore and we believe that the introduction of foreign investors to DCE iron ore futures will create new opportunities for iron ore pricing benchmark formation in Asia.
Glencore, the world's largest commodity trader, successfully executed the inaugural trade on the first day of internationalizing DCE iron ore futures through Straits Financial Services Pte. Ltd. (“Straits Financial”), who clears through Xinhu Futures Co., Ltd as domestic Futures Firm.
Straits Financial continues to be at the forefront of new developments in the global futures market, with a strong focus on connecting the Asian markets to the rest of the world. Straits Financial was the first to broker a deal for INE crude oil futures, and this is another testament to our readiness and focus on delivering new opportunities for our clients.
"This inaugural trade symbolizes the outcome of our focused efforts in exploring new opportunities for our clients as the Chinese financial market becomes increasingly relevant to foreign investors," said Mr. Roger Quek, Managing Director of Straits Financial Services Pte. Ltd. “Straits’ participation is a mark of confidence to international participants that they can depend on Straits to trade into the Chinese markets where the regulatory landscape remains challenging for foreign investors.”
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities. With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing sectors. The Group also provides financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 146,000 people, including contractors.
ABOUT DALIAN COMMODITY EXCHANGE
Dalian Commodity Exchange (DCE) is a futures exchange and an important futures trading center in China, approved by the State Council and regulated by China Securities Regulatory Commission (CSRC). Founded in 1993, it has become the world’s largest agricultural futures market as well as the largest futures market for oils, plastics, coal, metallurgical coke, and iron ore.
ABOUT STRAITS FINANCIAL GROUP
Headquartered in Singapore, Straits Financial Group is the brokerage house under CWT Limited that offers a full spectrum of derivatives & OTC products, including trade facilitation for physical commodities. Established affiliate offices are in Chicago, New Jersey, Shanghai, Hong Kong and in Jakarta. The U.S. subsidiary, Straits Financial LLC, is a full Clearing Member of the Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), the Commodity Exchange (COMEX), CME Clearport, Dubai Mercantile Exchange (DME), and the New Zealand Exchange (NZX). Straits offers clearing access to all major global commodity exchanges. For more information, visit www.straitsfinancial.com.