Iron Ore Futures and Options Overview

  • 1 Feb 2019
  • By CME Group
  • Topics: Metals

Why Trade Iron Ore at CME Group?

CME Group offers the most comprehensive metals offering that covers all your needs including our unparalleled precious metals liquidity and an expanded slate of base and ferrous metals solutions. Tap into our markets across the product suite, including Iron Ore Futures and Options, and begin benefitting from easy execution, reduced costs and reliable access around the clock.  Additional value in our Iron Ore products can be found through:

  • A global price established by international market participants
  • Secure risk management for all market participants via central counterparty clearing
  • Access to transparent, onscreen liquidity through cutting edge technology
  • Nearly 24-hour ability to clear contracts and access the market
  • Contracts sized 500 dry mt with minimum block trade size of 10 lots
  • Monthly futures and options contracts available for the current year and the next 3 calendar years

Security in a Highly Regulated Market

Market Regulation works to protect market integrity, to enforce rules that protect all market participants, and to act proactively to mitigate risks in the marketplace.

  • Central counterparty clearing ensures the financial security of the marketplace and help clearing participants limit credit risk and achieve operational and financial efficiency.
  • Privately negotiated block trades submitted for clearing via CME ClearPort, enhancing your secure access to liquidity in the OTC market.
  • Spot month position limits prevent from any potential squeezes.

Transparency of the Daily Settlement Mechanism

The daily settlement is based on market information that may include but is not limited to:

  • Resting bids and asks on CME Globex with consideration given to trades executed on CME Globex throughout the day
  • Price data obtained from a cross section of the OTC brokers collectively representing buyers and sellers as well as other OTC market participants
  • Price data from other sources deemed reliable and accurate rather than leaving price discovery to a potentially smaller group

How You Can Benefit from Trading Iron Ore Futures and Options

Visibility and Anonymity of the Trade Flow

Market participants have unprecedented visibility of the trade flow while maintaining anonymity of all participating parties. All Iron Ore products are available for trading electronically via:

  • CME Globex – our global electronic trading system for futures and options
  • CME ClearPort – for clearing block trades through a comprehensive set of flexible clearing services for the OTC market
  • CME Direct – a highly-configurable trading front end for CME Group markets that offers a complete suite of solutions across the trading life cycle

Iron Ore Futures’ Performance Increased 68% from the start of 2016 through the end of 2018

Cross Margin Benefits

CME Group offers margin offsets up to 45% against key products. The initial margin on an 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.

Exchange

Spread Products

Credit

CMX

HG-COMEX Copper futures

45%

CMX

A38-Aluminum A-380 Alloy Platts futures

30%

CMX

ALI-Aluminum futures

25%

NYM

FSF-HMS 80/20 Ferrous Scrap, CFR Turkey (Platts) futures

25%

CMX

ZNC-Zinc futures

20%

CMX

ALA-Alumina FOB Australia (Platts) futures

20%

CMX

ALB-Alumina FOB Australia (Metal Bulletin) futures

20%

Rates as of February 1, 2019. For most up-to-date information visit www.cmegroup.com/margins.
For more information visit cmegroup.com/ironore or contact metals@cmegroup.com.

About CME Group

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.

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