This strategic partnership will help the steel industry better manage steel price risk, with a world-class trading platform and a complement of steel futures products. The products are expected to launch in the fourth quarter of 2013 following filing with the Commodity Futures Trading Commission.
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These new futures contracts will be financially-settled monthly against WSEM’s SteelBenchmarker Pricing System and listed on NFX, a public futures exchange which gives institutional investors an efficient and secure way to trade steel. Transparent and regular pricing will allow market participants to manage their risk on short-, medium- and long-term contracts.
Investors interested in exchange-traded steel futures will benefit from a forward price curve to judge hedging opportunities, which also allows for timing flexibility on forward price commitments. NFX will offer improved contact performance with no defaults on exchange cleared trading.
After the launch of the initial U.S. steel futures products, NFX will continue to expand its offering with additional products, such as European and world export market steel futures.
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