First Ferrous Shredded Scrap Futures Contract Settled against AMM's Midwest Index Trading on NFX

"The ferrous futures market can now minimize their pricing risks against a robust index that is trusted by both the financial and physical communities," said CEO Raju Daswani. "Key market participants have already started taking advantage of this unique hedging opportunity."

American Metal Market is a part of the Metal Bulletin Group, a price reporting agency serving the global metals and mining markets. It has invested significantly to ensure the accountability and auditability of its prices, including a state-of-the-art pricing system and adherence to International Organization of Securities Commissions (IOSCO) principles, according to Daswani. The company started publishing its Midwest ferrous scrap indices in 2010 and remains the benchmark for the North American ferrous scrap markets.

The new shredded futures contract will trade 15 months forward and be financially settled on a monthly basis against American Metal Market's Midwest shredded steel scrap index. The 10-gross-ton contract is offered electronically and via voice broker from Sunday at 7pm New York time through Friday at 5pm New York time.

The contract is the result of a partnership between NFX and World Steel Exchange Marketing (WSEM) that aims to introduce and market steel and iron ore markets to global hedgers and institutional investors.

"WSEM and AMM provide market participants an efficient instrument to handle price volatility exposure, and bring a higher level of price transparency to all marketplaces," said Rick Beaman, Vice President and head of Nasdaq Futures. "This is a welcome step in our expansion into new asset classes in 2018."

"We are exceedingly pleased to be partnering with NFX to deliver to the marketplace steel contracts that provide both principal and direct market access to the global trading community on a 22-hour-a-day basis," said WSEM CEO Mike Frawley.

American Metal Market's prices are already the basis of another scrap futures contract. In 2012, CME Group Inc. launched its first-ever U.S. ferrous scrap futures contract based on AMM's Midwest Ferrous Scrap Index for No. 1 busheling. This contract saw increased volume in January 2018 - a record month 1,467 lots/ 29,340 gross tons (preliminary figures).

Metal Bulletin Group's prices underpin a number of other metals futures contracts worldwide, including the CME's copper cif Shanghai futures contract and the exchange's duty-unpaid aluminum premium contract. Metal Bulletin Group provides more than 2,000 independent price benchmarks and assessments for the global steel, nonferrous and scrap markets. Metal Bulletin Group is owned by Euromoney Institutional Investor PLC ("Euromoney"), the international online information, events and commodities price reporting business. For more information, please contact Thorsten Schier at [email protected].

About Metal Bulletin Group:
American Metal Market is part of the Metal Bulletin Group, the price reporting division of Euromoney Institutional Investor PLC. Metal Bulletin Group provides information, including independent industry price benchmarks, for the metal and mining industry. Its global portfolio of news, analysis, conferences and insight services complement its activity in pricing. With an international global team of more than 160 people focused on price and market assessments, it provides more than 2,000 proprietary prices. These prices are regularly used for benchmarking contracts related to physical trades; financial contracts are also settled against Metal Bulletin's prices. Metal Bulletin Group is a completely impartial and independent price reporting agency (PRA) and engages with all sides of the market, including sellers, buyers and traders, during the price discovery process. The group's main offices are in London, New York, Shanghai, Singapore and Sao Paulo. The Metal Bulletin Group's parent company, Euromoney Institutional Investor PLC, is listed on the London Stock Exchange and is a member of the FTSE 250 share index. It is a leading international business-to-business media group focused primarily on the global banking, asset management and commodities sectors. It owns more than 70 brands, including Metal Bulletin, and is also a leading provider of price and market intelligence for the paper and pulp sector under its RISI brand.

SOURCE American Metal Market