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djcustomclips@djinteractive.com on 20/11/2000 16:19:41
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Subject: Enron Reuters folder: FRANCE: Metals web platform EMETRA may add 
ferro-alloys.


FRANCE:
Metals web platform EMETRA may add ferro-alloys.

11/20/2000
Reuters English News Service
(C) Reuters Limited 2000.

PARIS, Nov 20 (Reuters) - Metals internet trading exchange EMETRA may add
selected ferro-alloys to its existing range of non-ferrous metals products,
Heinz Schimmelbusch, managing director of Safeguard International Fund, said
on Monday.

Safeguard has a stake in EMETRA, alongside Enron Metals and Internet Capital
Group .
"There's no reason why tin or nickel are being traded on and certain
ferro-alloys are not being traded," Schimmelbusch said at a Metal Bulletin
conference in Paris.

"One would be tempted to add ferro-alloy industry standards to these new
exchange-based trading operations."

EMETRA launched physical trade of non-ferrous metals in October via its
website at www.emetra.com.

A derivatives platform, developed in conjunction with Deutsche Boerse, is due
to follow in the first quarter of next year.

Futures and derivatives are the key to adding value to ferro-alloys trade via
e-commerce, Schimmelbusch said.

"I don't think that physical platforms add anything unless they're connected
to futures pricing," Schimmelbusch said, citing the volatile nature of
ferro-alloys markets and the need to provide a transparent hedging mechanism.

Such hedging mechanisms that existed in the industry were confined to
privately negotiated deals, he added.

But as business migrated to web-based platforms more formal futures markets
might emerge, he said, pointing out that ferroalloy producers could already
offset power cost risk through a range of trading options.

"In the future it will be possible to lock in margins and eliminate volatility
over certain periods of time, and at a much lower cost than can be done
privately now," he said.

EMETRA was founded in February as a joint venture between LME ring trader MG
Plc - subsequently bought by U.S. energy and power giant Enron Corp - Internet
Capital Group and Safeguard International Fund LP.



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