Pressrelease FIS 20201112

Pulp & Paper Futures
Freight Investor Services, the leading broker of freight and commodities
futures and options, is supporting traders wishing to take advantage of
the cash-settled pulp and paper contracts offered by NOREXECO clearing
against the Shanghai Futures Exchange final delivery settlement price and
Fastmarkets FOEX.
The first of four new contracts – Shanghai Bleached Softwood Kraft Pulp
Futures (NOREXECO Shanghai Pulp Futures) is already available via
NOREXECO with financial settlement against the NOREXECO Shanghai
Final Index (NSFI).
In Q1 2021 NOREXECO will launch two additional China-focussed
contracts, Northern Bleached Softwood Kraft (NBSK CIF China Future) and
PIX Bleached Hardwood Kraft Pulp (BHKP China Net Future) both with
settlement against the Fastmarkets FOEX.
NOREXECO will also launch a new contract for recycled paper (NOREXECO
Recycled Paper OCC) also with settlement against Fastmarkets indices.
These new contracts enable traders in the physical market and those
interested in trading volatility to take advantage of market movements
and hedge their exposure. FIS is delighted to have this opportunity to link
volumes between Asian and Western counterparts and provide a fresh
trading opportunity.
China accounts for 36% of pulp demand, importing 9m tonnes of
softwood NBSK and 12m tonnes of hardwood BHKP annually. Around
400m tonnes of Pulp futures traded on the SHFE last year and annual
volatility of the NBSK contract is around 27%, higher than Cotton, Copper
and Brent Crude.
FIS has a track record of more than a decade in developing liquidity in
new markets and is ideally positioned to help new and existing clients add
this asset class to their trading portfolios.
“With annual volumes of 70m tonnes and 200m tonnes respectively, the
pulp and recycled paper markets represent a huge opportunity for traders
with physical exposure to the Chinese market and futures players seeking
new counterparts,” said John Banaszkiewicz, Managing Director, Freight
Investor Services. “FIS is delighted to bring a new opportunity to credible
and long established markets and create fresh liquidity to participants
eager to access index-settled futures contracts.”
Specifications for the NOREXECO contracts can be found on the following
pages.
To find out more about this exciting opportunity, please speak to your
broker or email pulpandpaper@freightinvestor.com.

NOREXECO Shanghai Pulp Futures
Underlying product
Benchmark provider
Venue Product Code
Minimum tradable volume
Volume tick size
Contract volume
Trading Days
Last trading day
Final Settlement
NBSK CIF China Future
Underlying product
Benchmark provider
Venue Product Code
Minimum tradable volume
Volume tick size
Contract volume
Trading Days
Index days
Last trading day
Final Settlement
The Final Delivery Settlement Price of the Bleached Softwood Kraft Pulp Futures Contract traded on the Shanghai Futures
Exchange (SHFE), exclusive of VAT and converted to USD.
The SHFE contract is based on Bleached Softwood Kraft Pulp physically delivered at designated China inland storage
facilities. The NOREXECO contract is financially settled against the NOREXECO Shanghai Final Index.
NOREXECO ASA
NBSK_SHFE
100 MT per month.
100 MT per month.
The Contract Volume is MT per month NBSK Pulp * number of months of the Contract.
Norwegian trading calendar.
The Last Trading Day is the day when SHFE publishes the SHFE Final Delivery Settlement Price. This is in general on the
15thday of the month, but subject to weekends and movable Chinese holidays.
Final settlement takes place on the first Settlement Day after the Last Trading Day (T+1).Final settlement is based on the
SHFE Final Delivery Settlement Price that is published in RMB/MT on the expiration day. NOREXECO deducts the prevailing
VAT and converts to USD/MT by using the European Central Bank’s official exchange rates for RMB/EUR and USD/EUR on
the expiration day to calculate the NOREXECO Shanghai Final Index (NSFI) in USD/MT, rounded with two decimals. The
NSFI will be published by 17:00 CET on the Last Trading day.
Northern Bleached Softwood Kraft (NBSK) Pulp, standard dryness 90 % air dry, standard strength characteristic, brightness
88 and standard ECF/TCF, Price reference: delivered (cost, insurance and freight), standard delivery and payment terms,
denominated in USD.
Fastmarkets RISI
NBSK_CIF China
100 MT per month.
100 MT per month.
The Contract Volume is MT per month NBSK Pulp number of months of the Contract.
Norwegian trading calendar.
Fridays @ 10:00 am Singapore time
The Last Trading Day is the last Assessments Day of the month. If the last Assessments day of the month is not a Norwegian
business day, the Last trading day is the Norwegian business day prior to the last Assessments day.
Final settlement takes place on the first Settlement Day after the Last Trading Day (T+1).
Final settlement is based on the monthly NOREXECO Final Settlement Index (NFSI). NFSI is the arithmetic mean, two
decimals rounded, of the weekly RISI NBSK CIF China Assessments included in the month.

BHKP China Net Future
Underlying product
Benchmark provider
Venue Product Code
Minimum tradable volume
Volume tick size
Contract volume
Trading Days
Index days
Last trading day
Final Settlement
PIX Bleached Hardwood Kraft Pulp (BHKP), standard dryness 90 % air dry,
standard strength characteristic, brightness 88 and standard ECF/TCF, Price
reference: delivered, standard delivery and payment terms, denominated in USD
Fastmarkets FOEX
BHKP_China Net
100 MT per month.
100 MT per month.
The Contract Volume is MT per month BHKP Pulp number of months of the Contract.
Norwegian trading calendar.
Fridays, 11:00 AM Helsinki time
The Last Trading Day is the last Index Day of the month. If the last Index day of the month is not a Norwegian business day,
the Last trading day is the Norwegian business day prior to the last Index day.
Final settlement takes place on the first Settlement Day after the Last Trading Day (T+1).
Final settlement is based on the monthly NOREXECO Final Settlement Index (NFSI). NFSI is the arithmetic mean, two
decimals rounded, of the weekly PIX Pulp BHKP China Net indices included in the month.
Recycled Paper OCC Future
Underlying product
Benchmark provider
Venue Product Code
Minimum tradable volume
Volume tick size
Contract volume
Contract Price
Tick size
Trading Days
Index days
Last trading day
Final Settlement
Terms and definitions according to EN 643. Terms of delivery: d/d at buyers mill/warehouse in Europe denominated in
EUR. Material sorted. Terms of payment: 30 days or other term of payment which is used in the majority of
sales/purchases. Net transaction price. Price for recycled paper to be delivered still within the month of the sale/purchase
and latest during the following month. Custom and other duties paid, excluding VAT.
Fastmarkets FOEX
OCC 1.04_Europe
100 MT per month.
100 MT per month.
The Contract Volume is MT per month Recycled number of months of the Contract.
EUR / MT with two decimal places
The minimum price fluctuation is 1.00 EUR/MT
Norwegian trading calendar. (Insert link to webpage) to attachment 1 in Rulebook on webpage
Tuesdays 11:00 AM Helsinki time
The Last Trading Day is the last Index Day of the month.
Final settlement takes place on the first Settlement Day after the Last Trading Day (T+1). Final settlement is based on the
monthly NOREXECO Final Settlement Index (NFSI). NFSI is the arithmetic mean, two decimals rounded, of the weekly PIX
OCC 1.04 indices included in the month.

Freight Investor Services Ltd
UK: +44 (0) 20 7090 1120
US: (203) 325 8004
Singapore: +65 6535 5189
Shanghai: +86 21 6335 4002
Mumbai: +91 22 4881 8900
info@freightinvestor.com
www.freightinvestorservices.com
Disclaimer
The information provided in this communication is general in nature only and does not constitute advice in relation to investment products nor constitute any
recommendation on our part. The information has been prepared without taking into account your investment objectives, financial situation or knowledge and experience.
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Investor Services PTE Ltd ('FIS PTE') is a private limited company, incorporated and registered in Singapore with company number 200603922G, and has subsidiary offices in
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