UPDATE 2-ICE aims to launch global cotton contract early next year
* New global contract needed to reflect global market
* ICE seeking amendment of cotton act to list in the U.S.
* Malaysian agricultural regime overhaul delayed launch (Adds detail, quotes)
By Maha El Dahan
DUBAI, Oct 2 (Reuters) - IntercontinentalExchange plans to launch its postponed global cotton futures contract early next year, a senior executive said on Thursday, which should provide a more accurate reflection of international prices.
Cotton traders have argued that a new contract is necessary because the United States contract currently used as the global benchmark relates only to deliveries of U.S. cotton, but ICE's new market has been delayed by regulatory changes planned in Malaysia.
The first alternative for merchants, mills and growers to pricing on ICE's U.S. benchmark, will be the world's first international contract with physical delivery.
ICE had planned to launch the contract before the end of this year, but ICE Futures' vice president of product development said it is now penned in for the first quarter of 2015 because Malaysia is poised to announce changes to its agricultural import rules in January.
"For seven of the nine origins in the new contract Malaysia is the delivery point, so we have been seeking clarity from Malaysia on the new rules," ICE's Tim Barry told a meeting of the International Cotton Association in Dubai. Continuación...