NOREXECO Extends Risk Management to Recovered Paper — OCC
From listing date, NOREXECO will set closing prices, have tradeable prices on screen and open for block trades.
July 12, 2017 - NOREXECO on July 6 announced that it will begin listing the most widely traded grade of recovered paper — Old Corrugated Container (OCC). Subject to regulatory approval, OCC will be listed from the beginning of 2018.
From listing date, NOREXECO will set closing prices, have tradeable prices on screen and open for block trades. Ongoing consultations with the industry will determine product structure, indexes, settlement etc. Gaining essential support from major industrial participants will be of crucial importance to make OCC a liquid market.
Transactions on NOREXECO are available to exchange members. NOREXECO offers a fully transparent system with equal risk management opportunities for all participants. Trading is compliant with international regulations. All transactions are cleared through the reputed partner European Commodity Clearing AG in Germany.
The first product listed on NOREXECO was pulp (softwood and hardwood). Since the first transaction in April 2016 volumes have increased steadily.
The international OCC market has historically been volatile. In a volatile world with great challenges we have been welcomed as a stabilizing factor. Our discussions with the stakeholders so far indicate support for this listing," said Stein Ole Larsen, CEO of NOREXECO. "We believe that the paper industry should have the same opportunity to manage their price risks on a fully regulated marketplace as other mature industries.
NOREXECO is a regulated commodity exchange specialized for the global pulp and paper industry. To learn more, please visit: www.norexeco.com.
SOURCE: NOREXECO ASA