ICE

Global Commodities Holdings to work with ICE to create nickel contract

Credit: REUTERS/Yusuf Ahmad

Adds detail about the contract and platform

LONDON, March 27 (Reuters) - UK-based Global Commodities Holdings Ltd (GCHL) will launch its physical metals platform next month starting with nickel which will be traded for delivery in locations from Baltimore to Yokohama, the company said on Wednesday.

Traded prices from the platform will be used to create nickel indices and GCHL is working with Intercontinental Exchange <ICE.N> to create derivatives contracts that can be settled and cleared centrally.

Trading membership of the platform will be restricted to companies that have physical trading activity.

"There is a clear need for a properly regulated spot platform to step into disrupted or less liquid markets with a tried and tested method of facilitating trade and discovering benchmark prices that reflect industrial activity," Martin Abbott, GCHL chief executive, said in a statement.

GCHL already has a relationship with ICE. Its subsidiary globalCOAL owns and operates the gC NEWC thermal coal index used as the settlement price for the gC NEWC Futures contract traded and cleared by ICE Europe.

"We are exploring the potential to do this and engaging with market participants and key stakeholders on how we can deliver an alternative market structure for nickel, using GCHL's pricing, to deliver a better model for hedging which is more adaptable to a changing supply chain," said Chris Rhodes, President of ICE Futures Europe.

(Reporting by Pratima Desai; editing by Jason Neely)

((pratima.desai@thomsonreuters.com; +44 207 513 5681))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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