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SGX iron ore benchmark to anchor S&P Dow Jones new iron ore indices

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Dry Bulk,

Singapore Exchange's (SGX) global iron ore benchmark has been adopted by S&P Dow Jones for its S&P GSCI Iron Ore index and the S&P GSCI Industrial Metals & Iron Ore Equal Weight index, which were launched on 11 December.

The two new indices, the first of their kind in the market, are an expansion of the single and sector commodity series offering of indices based on the S&P GSCI. They will provide investors with reliable and publicly available investment performance benchmarks for iron ore or as part of a selection of industrial metals including aluminium, copper, lead, nickel and zinc.

Iron ore, the key raw material in steelmaking, has emerged as Asia's growth barometer. It is the region's first global commodity, increasingly following in the footsteps of the oil complex in terms of size and economic importance.

SGX, Asia's leading and trusted market infrastructure, is the home of international iron ore, accounting for almost 100% liquidity of seaborne iron ore derivatives. The exchange pioneered the world's first iron ore derivatives in 2009 and has developed a deep, diverse and international pool of liquidity in the past decade to support the trading of the commodity.

SGX offers a comprehensive range of trading and risk-management solutions that provide the industry quality pricing across different grade specifications – 58% Fe, 62% Fe and 65% Fe – backed by strong institutional participation. Iron ore derivative volumes at the exchange are set to exceed 1.3 billion t in 2018, up from 17.6 million in 2010.

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