Amid building momentum in the development of steel futures, Birmingham Futures Exchange (BFEx) plans to open as an over-the-counter marketplace later this month with trading to commence later this year.
Jonathan Putman, chairman and ceo, told FO Week that BFEx will be a membership marketplace that allows manufacturers and end users to buy and sell steel futures. He said the need for BFEx is essential, especially after products such as hot rolled steel rose 90% in a seven-month span last year.
"Half of the steel industry is in bankruptcy and the other half isn't feeling so good," said Putman, a 25-year veteran of the steel purchasing business. "So counterparty credit is a critical issue."
London Metal Exchange (LME)...