Norwegian pulp and paper exchange NOREXECO has announced that it will launch a Future Contract for OCC trading.
Set to launch on 6 October, the exchange will allow for future contract pricing of OCC.
The company has said more information will be published prior to the launch.
However, NOREXECO already has an OCC exchange that is based on supermarket corrugated and board with terms and definitions according to the EN643 standard.
It also has two exchanges based on pulp.
On its website, it defines a futures contract as: “A futures contract is generally a contract between two parties to buy or sell an asset for a price agreed upon today (the futures price) with settlement at a future point, the settlement date. Because the future contract is a function of an underlying asset, a futures contract is considered to be a derivative product. Some futures contracts have financial settlement towards an index, others has physical delivery at a warehouse. The futures traded at NOREXECO are cash settled against an index.
“An exchange traded, cleared futures contract with cash settlement is a legal agreement between a buyer (seller), and the clearinghouse partner of the futures exchange in which the buyer (seller) agrees to settle the contract towards an index over the lifespan of the designated financial contract .
“The price at which the parties agree to transact is called the futures price. The designated date at which the parties must settle the final amount is called the settlement date.”