Slumping iron ore prices in September caused derivatives volumes to spike, after a relative sanguine period with prices hovering in a narrow range, according to data from The Steel Index.
Over 62 million mt of iron ore derivatives were cleared outside China last month, with 15.6 million mt of options trade, 25 million mt of futures and the balance swaps.
Last month was the first time futures actually eclipsed swaps in volume -- some participants prefer futures for regulatory reasons.
"If the market migrates to futures entirely then theoretically more people should be able to participate," one paper trader said.
Dodd-Frank legislation has made it tougher for US companies to trade swaps as opposed to futures.
Swaps and futures contracts on SGX are fungible.
It was also a record for options trade.
Almost all cleared iron ore derivatives trade outside China is settled against reference prices published by The Steel Index, a unit of Platts operating under its own methodology.
At the end of last month TSI's 62% Fe fines reference price stood at $78.50/dmt CFR Tianjin, down more than 10% from the start of the month.
Prices have ticked up recently, despite the National Day holiday, which most sources deem as trader driven.
TSI's price edged back up to $80/dmt CFR Tuesday, up $2.50/dmt on the week.
Source: Platts