Steel Trading Firms Plan Online Exchange

Cargill Steel, Duferco, Samsung and TradeARBED said they will band together to create an independent global exchange for online steel trading. The three steel trading companies have pledged a proportion of their business, amounting to billions of dollars, to ensure sufficient volume, liquidity and market-making ability for the operation. They said the exchange, which will be based in New York, should be operational by the fourth quarter. Andersen Consulting is supporting the venture, helping define the exchange’s strategy, planning and business models. The partners said the exchange will also be the first to offer online financing, risk management and logistics operations. The name and Web site address for the new exchange will be announced in coming weeks.

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