Interdealer broker ICAP has launched a new broking service for global iron ore derivatives.

The service offers market participants the ability to offset risk exposures in one of the world's leading base metal asset classes.

ICAP will use its electronic capabilities to provide iron ore derivative price distribution between Asia, Europe, and the Americas, providing global execution and research services to a broad spectrum of market participants.

Paul Newman, managing director of ICAP Energy Ltd., said: "ICAP has proven its ability to build derivative liquidity and transparency in emerging asset classes, and we believe the physical transition being observed in today's iron ore market offers interesting opportunities. By combining our voice broking expertise with ICAP's global electronic footprint we are well placed to provide derivative trading synergies between iron ore and our existing coal, freight, and base and precious metals services."

Don McClumpha, deputy chief executive, ICAP Asia-Pacific, added: "With a greater concentration of physical iron ore trade being exposed to spot market volatility, and a global focus fixated on seaborne trade in Asia, the region occupies a significant position in the future development of the iron ore derivatives market.

"Combining ICAP's existing voice broking presence spanning eleven countries in the region with our technology will provide our Asian based customers with a centralised liquidity pool that can leverage ICAP's global connectivity to other market participants worldwide."