---------------------- Forwarded by Iona Maclean/LON/ECT on 21/11/2000 15:47
firstname.lastname@example.org on 20/11/2000 16:19:41
Please respond to email@example.com
Subject: Enron Reuters folder: FRANCE: Metals web platform EMETRA may add
Metals web platform EMETRA may add ferro-alloys.
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
Safeguard has a stake in EMETRA, alongside Enron Metals and Internet Capital
"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 firstname.lastname@example.org
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