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globalORE™ set to commoditise iron ore market

New venture aims to standardise the market, deliver price transparency and develop liquidity in the global iron ore market.

London, Singapore, 23rd March, 2010. A new venture to promote the commoditisation of the global iron ore marketlaunched today. globalORE is introducing standardised contracts, online trading and risk management tools.

These offerings will enable market participants to manage price related risk more effectively, especially relevant given the current volatility on the spot market and uncertainty surrounding the benchmarking system. 

The evolution of the iron ore market depends on the widespread adoption of standardised contracts. globalORE's Standard Iron Ore Trading Agreement (SIOTA) fixes the constant elements of trade (quality specifications, payment and delivery terms), leaving price and volume as the only variables to be agreed between parties.

By signing up as a globalORE market member, iron ore players can trade efficiently on globalORE's online trading platform which guarantees price and volume transparency as well as anonymity. Trading data generated through this electronic marketplace will contribute to the development of robust indices and reliable forward curves.

As the physical market evolves, globalORE will innovate financial products which enable market participants to manage their exposure to price, volume and counterparty risk.

globalORE is a subsidiary of globalCOAL®, which, since its inception in 2001, played a pivotal role in the commoditisation of coal and the development of financial coal products. Today, it is the world's leading coal trading platform, offering a fast, transparent route to physical and financial coal markets.

"We aim to reproduce the success of globalCOAL in the iron ore sector", said Eoghan Cunningham, CEO, globalCOAL and globalORE, "We will leverage synergies between both industries and work with the market to roll out the key elements of a commoditised trading environment."



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