The Iron Ore and Steel Derivatives Association was formed to reflect the changes in the iron ore and steel markets and the development of their associated derivatives markets. With 850 million tonnes worth over $160bn traded in 2008, iron ore is one of the most important commodities in the world today.The association is designed to act as a mechanism for liquidity-building and problem-solving, attracting input from users, traders and brokers that can be used to benefit the marketplace as a whole.
At its inaugural meeting in Singapore in July, IOSDA elected John Banaszkiewicz, managing director of FIS as chairman. Mr Banaszkiewicz summed up the opportunity for members of the organisation: “The iron ore market is rapidly moving from the annual benchmark pricing system to increased use of spot and index pricing. That means iron ore derivatives will become an important tool in managing price risk. At our first meeting, we brought the industry together and successfully established a brand new global industry association for a rapidly changing business. I think the timing is perfect.”