A change in the way iron-ore prices are determined has provided an opportunity for investment banks. As liquidity in the market improves, banks are seeking to capitalize on iron-ore derivatives. "The challenge now is building more liquidity to the market and we are seeing this as more banks join the market, but it takes a while to go through the [regulatory] approval process to trade these new products," said Mikko Rusi of BNP Paribas.

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