Pulp Paper & Logistics
PRODUCTS & SERVICES 25
Derivatives exchange platform launched for pulp and paper industries
by NOREXECO, providing what is claimed to be the world’s only derivatives exchange for the sector. The service has been supported by European Commodity Clearing (ECC), Europe’s leading clearing house for energy and related products, which will provide clearing and settlement for the newly launched contracts. NOREXECO has been granted a license by the Norwegian Ministry of Finance, which covers financial derivatives within forestry and paper. The first products listed on Norexeco are two financially settled pulp contracts (NBSK Softwood Kraft Pulp and BHKP Hardwood Kraft
E
xchange services specific to the pulp and paper industry have been launched
Pulp). The estimated market size on pulp in the open market is about 60 million tons with a market value exceeding US$50 billion. Financial contracts have recently only been available in the OTC market. A fully transparent trading
system with equal risk management opportunities for all participants is being offered. Since its launch in September NOREXECO has been setting closing prices and offering the registration of block trades for clearing. Trading will be compliant with national regulations and all transactions will be cleared through ECC, based in Germany. Norexeco and ECC have been closely working together since early 2014. “We are very excited about opening the exchange,” said
Stein Ole Larsen, chief executive of NOREXECO. “We have received great interest from participants around the world. To start a unique exchange platform for pulp from the Norwegian forestry hub Kongsvinger just outside Oslo has taken some time, but now we are ready to start and are proud of what we can offer to our growing member base.” Dr Thomas Siegl, chief risk
officer of ECC, added: “Through the cooperation with NOREXECO, we extend our clearing offering to a completely new asset class. “Offering clearing services for
NOREXECO forms yet another milestone for us towards moving to a multi-commodity clearing house. Our standard procedures and processes as well as the uniform risk management approach integrate
range of quality innovations
The product family features a number of innovations as well as evolutionary product improvements. New first-in-the- market measurements include: an on-line softness measurement for tissue; a non-nuclear basis weight measurement for pulp drying; camera-based measurements and control for fibre orientation, and a topography-based surface properties and printability prediction. The profilers, WIS and WMS are
renewed in many areas as well: innovations in air-water spray nozzles for re-moisturising,a
fully-removable diffuser plate with advanced steam injection technology, new advanced technology for improved image quality, detection and classification. The user interface featuring
integrated performance reporting is said to take the user experience to a new level, revealing a clear view of the past, present and the future of the process and product quality through intuitive navigation. It also allows for easy grade management. The IQ MD Optimizer
brings all process and quality measurements into a single controller for maximizing production efficiency and achieving optimum product quality. Advanced tools for process analysis and adaptive scanning make the life of the operators easier. All of the IQ products in the
range are said to be based on vast process knowledge and long experience in the pulp and paper industry supported by local expert services to assure lifelong performance at the lowest total cost of ownership.
Valmet expertise is also available remotely for all customer mills through remote connections. All components of IQ are
designed to work together. The forward and backward compatibility helps to future- proof the investment and maximize the effectiveness of existing equipment. The products are designed to also work seamlessly with other automation systems and any paper machine, regardless of manufacturer. Easy connectivity with any system enables replacements even item by item.
January/February 2016
both existing and upcoming commodity markets.” Larsen adds that his ambition
is to give both the industry and the financial sector a regulated exchange for financial contracts. “Despite the fact that it is nearly the same size as the aluminium market, the pulp market does not have an exchange for trading. In a volatile world with great challenges we have been welcomed as a stabilizing factor,” he said. “We are very optimistic about the opportunity to supplement and to move a share of the trading from the bilateral OTC market to a fully regulated and secure marketplace. It is about time that the forestry and paper industry gets the same opportunity for risk management as other mature industries.”
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