SGX launches OTC Options suite

This is for SGX Iron Ore and SGX Forward Freight Agreements.

Singapore Exchange said the SGX OTC Options complement the thriving SGX Iron Ore and FFA product suite and provide customers with a comprehensive suite of instruments for hedging, trading, and credit risk mitigation.

In addition, SGX customers are able to efficiently clear their portfolio of commodities swaps and options with a single clearing house, and enjoy the benefit of margin offsets between options and the underlying swaps.

All option trades cleared from 10 September 2012 to 31 October 2012 will receive a 100% SGX clearing fee rebate. SGX said active iron ore options customers who clear at least 500 lots of options during the above period will also receive fee rebates on their underlying iron ore swaps.

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