Freight Derivatives

IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that ICE Clear Europe cleared its first freight forward agreement (FFA).

Cleartrade Exchange Pte Ltd, the OTC electronic global marketplace for freight and commodity derivatives, today announced it will be using all modules of Baymarkets EDGE OTC trading platform, including Marketplace, Credit Filter, and Clearing Gateway, to provide real-time processing for its trade execution facilities. This will address the increasing need for a truly electronic global marketplace for OTC freight and commodity derivatives and provide international access.

SunGard has enhanced its Stream post-trade derivatives solutions, including Stream GMI, Stream Clearvisionand Stream Ubix,to support CME Group’s Cleared OTC London Gold Forwards, Wet Tanker Freight Forwards, and Foreign Exchange (FX) Forwards.

LCH.Clearnet Ltd (LCH.Clearnet), the world’s leading independent clearing house, is set to clear for Cleartrade Exchange*, the first regulated execution venue for OTC cleared freight and commodity derivatives.

SuperDerivatives (SD), the derivatives benchmark and multi-asset front office solution, has been chosen by Simpson Spence and Young (SSY) shipbrokers to enhance the alpha returns of its new proprietary hedge fund, The Bluewave Shipping Fund.

For the first time, over-the-counter (OTC) container freight swap agreements (CFSAs) are to be cleared. In a major development, which will increase liquidity and open up access to the nascent market for new participants, LCH.Clearnet Ltd (LCH.Clearnet) is to launch clearing for CFSAs on 28 June.
With increasing volatility in container shipping rates, shippers and trading companies are looking to manage their risk through cleared trading opportunities.