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Enron Mail |
---------------------- Forwarded by Iona Maclean/LON/ECT on 21/11/2000 15:47
--------------------------- djcustomclips@djinteractive.com on 20/11/2000 16:19:41 Please respond to nobody@mail1.djnr.com To: 216668@mailman.enron.com cc: Subject: Enron Reuters folder: FRANCE: Metals web platform EMETRA may add ferro-alloys. FRANCE: Metals web platform EMETRA may add ferro-alloys. 11/20/2000 Reuters English News Service (C) Reuters Limited 2000. PARIS, Nov 20 (Reuters) - Metals internet trading exchange EMETRA may add selected ferro-alloys to its existing range of non-ferrous metals products, Heinz Schimmelbusch, managing director of Safeguard International Fund, said on Monday. Safeguard has a stake in EMETRA, alongside Enron Metals and Internet Capital Group . "There's no reason why tin or nickel are being traded on and certain ferro-alloys are not being traded," Schimmelbusch said at a Metal Bulletin conference in Paris. "One would be tempted to add ferro-alloy industry standards to these new exchange-based trading operations." EMETRA launched physical trade of non-ferrous metals in October via its website at www.emetra.com. A derivatives platform, developed in conjunction with Deutsche Boerse, is due to follow in the first quarter of next year. Futures and derivatives are the key to adding value to ferro-alloys trade via e-commerce, Schimmelbusch said. "I don't think that physical platforms add anything unless they're connected to futures pricing," Schimmelbusch said, citing the volatile nature of ferro-alloys markets and the need to provide a transparent hedging mechanism. Such hedging mechanisms that existed in the industry were confined to privately negotiated deals, he added. But as business migrated to web-based platforms more formal futures markets might emerge, he said, pointing out that ferroalloy producers could already offset power cost risk through a range of trading options. "In the future it will be possible to lock in margins and eliminate volatility over certain periods of time, and at a much lower cost than can be done privately now," he said. EMETRA was founded in February as a joint venture between LME ring trader MG Plc - subsequently bought by U.S. energy and power giant Enron Corp - Internet Capital Group and Safeguard International Fund LP. Folder Name: Enron Reuters folder Relevance Score on Scale of 100: 93 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright © 2000 Dow Jones & Company, Inc. All Rights Reserved
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