Thursday, August 3, 2017

Baltic Exchange Announces End of Baltex Future Freight Derivatives Report Venue

Operations to Cease This Year Subject to Financial Conduct Authority Permission
Shipping News Feature
UK – WORLDWIDE – The Baltic Exchange, based in London but owned these days by the Singapore Exchange which bought it in November 2016 for a reported £87 million, is to cease its freight derivatives platform, Baltex, at the end of the year. The 600+ global member companies which make up the Exchange are responsible for a large proportion of all dry cargo and tanker trade deals as well as the sale and purchase of merchant vessels, overseen by the Exchange code of conduct.

The Baltic Exchange is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Baltex, launched 6 years ago, is a block trade reporting venue for future freight agreements (FFAs) for the derivatives sector with principal members representing the who’s who of companies in the ship owning, chartering and commodity businesses, and is regulated as a multi-lateral trading facility (MTF) by the Financial Conduct Authority (FCA).

Earlier this year the London Clearing House, now LCH Clearnet, declared it was to end its derivatives clearing services this year and a statement from the Baltic Exchange said that the Baltex services would cease on the 29th December 2017 subject to permission from the FCA, and continued:

“Baltex will remain open until all open positions at LCH have either been closed out or have been novated to another clearing house.”