As iron ore importing countries of China, in iron ore pricing, always can't have a voice in the match with its size. In the global iron ore prices become more timely, more transparent, the Chinese might as well in the financial markets with RMB pricing of iron ore exploration and off the field DiaoQi futures trading. This is to protect China's iron ore user the essential, the most effective solutions, also can give China's investment Banks, Banks and other financial intermediary institutions to provide a new, reliable financial innovation opportunity and profit growth point. And from the international experience look, main products (such as oil) price discovery,MLB hats the futures and options contracts and off the DiaoQi trading the dynamic balance of Yin and Yang interaction. For example, only energy products, ICE released more than 400 DiaoQi outside of the contract transaction and settlement business. And China has any commodities trading, settlement of DiaoQi outside of the business. China can explore such as iron ore DiaoQi deal out, can make up the financial system bet a blank. In the 2008 financial crisis, global production of raw materials such as coal, energy, and transportation costs, and other short-term price volatility is high, add on the market exist generally operating and financial pressure, the traditional iron ore annual benchmark pricing model for ore traders or whatever steel enterprise, it has huge potential risks. Because of this, after numerous after tug of war, iron ore price negotiations from the annual, quarterly to pricing, and to the present by enterprise directly with ore business negotiations, the market for iron ore price transparency and the efficiency of the demand more and more. In June 2008, pullman's iron ore price index (Plattsiron oreindex) became the first independent transparent market of iron ore price index instant, meet the steel and iron ore business enterprise to the third party price requirements. Pullman's index published daily, can make the annual contract to the spot price of delicate degree, so that the forward price more transparent. After that, the iron ore swap contracts (IronOreSwap) by the Singapore exchange to the financial market, the end of the iron ore block trading commodities as but not the history of financial derivatives. So far, including ICE, four global Commodity Exchange have introduced the iron ore swaps contract. Use of iron ore swaps, can effectively avoid iron ore price risk. Steel enterprises as iron ore users, can be signed with exchange swaps contracts to a taste of iron ore price index for mark, to exchanges in advance of the agreed to pay a fixed price, and the exchanges will pay to steel enterprises with the changing market floating prices. In this way, steel enterprises can will cost control in their iron ore within the range of acceptable, and not in the face of intense spot iron ore market prices fluctuate stranded. On the other hand, the mineral chamber of commerce become swap agreement floating in the price of the ZhiFuZhe, from exchanges a fixed price, so this hand a lot of iron ore value. For example, in February 2009 settlement first ICE iron ore swaps, London iron ore and coal brokers London DryBulk as a brokerage company for Cargill (Cargill) and another anonymous company, to make the deal. One party is expected to, in a month later need to import 3000 metric tons of iron ore, iron ore prices and worry there will be rising trend. And the other side hands have plenty of iron ore, worry about a month after iron ore prices may decline. Today the company to another company sold $130 per metric ton of fixed price swap, and from another company to buy the average FuDongJia pullman's release. A month later, pullman's average FuDongJia for $135. So today the company in the swap expires paid directly to another company $15000. Swap deals for enterprise risk control provide the following several aspects of the help: according to the needs of the enterprises in the future of the iron ore trade in adjusting position; Get transparent forward iron ore prices; Gently enterprise capital account balances; Reduce the iron ore market fluctuations in response to the storage of the capital; And the future cash flow of the enterprise, and so on. Iron ore swap contracts for both steel enterprises avoid risk, but also help ore traders hedging, will be in the iron ore market playing more and more important role. In January this year, London and Singapore exchange liquidation of iron ore swap transaction volume at 2.6215 million tons, beyond the in April of last year to create 2.218 million tons of historical records. Although the volume in February by the influence of Chinese New Year, down to 1.3985 million tons, but also better than the same period last year of 974500 tons. Japanese earthquake will further stimulate the iron ore market hedge demand, iron ore swap contracts total trading years beyond 20.5645 million tons last year volume should be no problem. In iron ore swaps vigorous development and at the same time, the world's third largest iron ore suppliers India in January 29 officially launched the world's first iron ore futures varieties, which will further expand iron ore trade financial landscape. According to a variety of India Commodity Exchange (MCX) statistics, by the March 25, iron ore futures launched two months since the volume has reached 258800 tons of iron ore, iron ore futures trading and MCX India accounts for only of the total volume of iron ore futures 20%, and another 80% belong to Indian Commodity Exchange (ICEX). ICEX expected,sunglasses shop demand in Japan reconstruction and under the influence of iron ore futures trading in December is expected to increase 20% before. Note: this paper represent only the author personal point of view

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