CME Group offers the most complete suite of Iron Ore products in the market, including:
|TIO Future||Iron Ore 62% FE CFR China (TSI)||48 M||TSI*|
|ICT Option||Iron Ore 62% FE CFR China (TSI)||36 M||TSI*|
|TIC Future||Iron Ore 58% FE Low Alumina CFR China||36 M||TSI*|
|PIO Future||Iron Ore 62% FE CFR China (Platts)||36 M||Platts|
|ICP Option||Iron Ore 58% FE Low Alumina CFR China (Platts)||36 M||Platts|
All CME Group Iron Ore futures contracts have a size of 500 dry mt. Minimum block trade size is 10 lots. The contracts are financially settled. Our Iron Ore contracts are part of the suite of Ferrous products that delivers effective risk-management solutions ranging from:
In addition to affordable and transparent exchange fees, all CME Group Iron Ore products are currently on fee waiver (no charge for clearing) until the end of December 2016.
Transparency of the daily settlement mechanism
The daily settlement is based on market information that may include but is not limited to:
Visibility and anonymity of the trade flow
CME Group Iron Ore products are predominantly traded online on the CME Globex platform or via block trades cleared through CME ClearPort.
Market players have unprecedented visibility of the trade flow while maintaining anonymity of all participating parties.
Immediate Profit and Loss Realization
As a traditional futures market, CME Group Iron Ore offers immediate realization of the trading profit and loss upon close- out of the contract with an offsetting transaction.
If the contract is run to expiry, the settlement occurs after the last business day of the spot month.
Products: TIO and ICT traded on Globex
Program offers high volume liquidity providers no fees and monthly volume based bonus pool.
Margin offsets up to 65%
CME Group offers margin offsets of up to 65% against key correlated products.
The initial margin charge on a CME Group Iron Ore contract could be partially offset if a client has the opposite position in another commodity contract cleared through the same FCM at CME Group.
Iron Ore could be offset with a majority of liquid commodity contracts, including not only Ferrous and Base Metals but also Precious Metals and Coal.
|NYM||PIO - Iron Ore (Platts) Futures||65%|
|CMX||HG - COMEX Copper Futures||50%|
|CMX||ZNC - Zinc Futures||45%|
|CMX||ALI - Aluminum Futures||35%|
|NYM||PA - Palladium Futures||35%|
|CMX||SI-COMEX 5000 Silver Futures||30%|
|NYM||TIC - Asian Iron Ore Futures||30%|
|NYM||MCC - Indonesian Coal Mccloskey Subbit||30%|
|CMX||A38 - Aluminum A-380 Alloy Platts Futures||30%|
|NYM||NY-ALW - Australian Coking (Platts) Low Vol||25%|
|NYM||MTF - Coal Api2 Cif Ara Arg- Mcclosky Futures||20%|
|NYM||SSI - Coal Api 8 Cfr South China||20%|
Tap in to active markets across all three major time-zones: Asia, Europe and USA
Eroding margins are margins that decrease in value over time.
Many products have eroding margins because the margins are based on the average price for the month and, thereby, they present less risk than regular margins.
Currently, eroding margins are calculated with the formula: price scan* (calendar days remaining/total calendar days in the month) so that as the month goes on, the eroding margin decreases in value.
This means the margin is only posted on the residual risk as the contract month progresses.
A reduction in the initial margin requirements of almost 50% by mid-month means you can use your capital savings in other ways.
CME TIO Iron Ore Futures as of 14 July 2016:
|Start Period||End Period||Maintenance||Maint. Vol. Scan|
As of end July 2016, TIO total open interest exceeded 22,000 lots with positions open all the way to Dec 18.
Growing Market Share, Turnover and Open Interest
Increased volume is being attracted from two main segments:
CME Direct is the most cost-efficient and transparent way to trade, offering:
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