Over 100,000 tonnes of iron ore traded on 1st day – Deutsche Bank

May 26, 2008

May 26 (Steel Guru) – Deutsche Bank AG said that more than 100,000 tonnes of iron ore was traded on the first day of trading on a newly developed over the counter spot iron ore market.

Mr Ray Key MD and Head of Metals Trading at Deutsche Bank said the volumes corresponded only to Deutsche Bank even though the bank had created the new market in tandem with Credit Suisse.

Mr Key said that “Although the two banks launched the same product Friday, both banks operate separate trading desks for iron ore. The two banks coordinated the product launch and specification in order to generate more liquidity.

Credit Suisse and Deutsche Bank are offering over the counter, cash settled swaps in iron ore across a range of maturities. These swaps will be settled on a monthly basis against the indices published by Metal Bulletin and Steel Business Briefing and against spot iron ore, on a cost, insurance and freight delivered China basis.

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