LCH.Clearnet will introduce a clearing service for over-the-counter iron ore swaps later in May. They will be monthly cash-settled swaps, based on published industry reference prices.
The London-based clearing house will work with Freight Investor Services, an OTC iron ore and freight broker which LCH.Clearnet called a market leader in the asset class.
John Banaszkiewicz, managing director of Freight Investor Services in London, said iron ore swaps needed...