Hong Kong, Singapore battle it out for iron ore

Hong Kong launched futures for the commodity, competing with Singapore's offering.

Call it the iron ore wars. Bloomberg reports that two of Asia’s financial heavyweights are about to go head-to-head as Hong Kong Exchanges & Clearing Ltd. starts futures for a commodity that’s seen extraordinary volatility and been a popular way to bet on China, challenging Singapore Exchange Ltd.’s leading position.

HKEX will start trading the futures on Monday, pitting the new dollar-denominated contract against those offered by SGX, which introduced its first swap contracts in 2009 and has become the world’s largest clearer of the derivatives. To add firepower to the opening salvo, HKEX has promised newcomers all trading fees for the new product will be waived for six months.

Read the full report here.

Photo by Peter Craven, uploaded by High Contrast, CC BY 2.0