Lch News

Singapore Exchange Ltd (SGX) sees the potential to develop new freight derivatives centred on active Asian shipping routes and expand the use of freight derivatives with its acquisition of London's Baltic Exchange, a senior SGX official told Reuters. "We believe there are a number of opportunities that the Baltic Exchange and SGX can realise together, including the creation and adoption of new benchmarks of Asian shipping routes," Michael Syn, head of derivatives at SGX told Reuters. The Baltic's daily benchmark rates and indices are used to trade and settle freight contracts as well as for settling freight derivatives, or FFAs, that allow investors to take positions on freight rates in the future.

Baltic says holding discussions with several parties. The Baltic Exchange confirmed on Friday it had received a number of "exploratory approaches" after the Singapore Exchange Ltd revealed it was seeking to buy the business which has been the hub of the global shipping market for centuries. Reuters exclusively reported on Thursday that the Baltic Exchange had held talks with SGX and other potential buyers, months after sources had said the London Metals Exchange (LME) made an approach to buy it. "The Baltic Exchange confirms that it has received a number of exploratory approaches and that it is now in confidential discussions with selected third parties regarding its future strategy and ownership," it said in a statement.

Baltex reaches breakeven level since start of 2015; Baltic previously faced broker opposition over platform. London's Baltic Exchange is studying a potential foray into commodities and is open to proposals on tie-ups as other exchanges attempt to boost volumes, its chief executive said. Baltex, the Baltic's digital shipping platform, was launched in 2011 as the first central electronic marketplace for freight forward agreements (FFAs), which allow investors to take positions on freight rates at a point in the future. Since the beginning of this year, the previously loss making platform, has reached break even levels after Baltex became a venue for presenting block futures at the start of December.

London's Baltic Exchange and clearing house LCH.Clearnet are in talks about a tie-up over the Baltic's freight derivatives platform, the two groups said on Friday. Volumes have remained low on the loss-making Baltex multilateral trading facility since it started in June 2011. It is the first central electronic marketplace for freight forward agreements (FFA). "We are finalising arrangements with LCH.Clearnet, which clears about 70 percent of the dry bulk FFA market, to enable them to transform OTC (over-the-counter) derivatives into futures in response to certain rule changes," the Baltic's outgoing chairman Quentin Soanes wrote in the exchange's annual report published on Friday.

Major boost for swaps liquidity as WCI backhaul routes are listed for clearing. Introduction of clearing for new Europe-Asia routes will bring significant additional trading potential to container derivatives market. The World Container Index is pleased to announce that two WCI route assessments, covering Los Angeles to Shanghai and Rotterdam to Shanghai will now be cleared by LCH.Clearnet. The addition of clearing, which provides risk management for over-the-counter container freight swap trades, has been made in response to increased demand to manage freight price risk and reflects the growing market acceptance of the WCI. Since launch in September 2011…

Saxo Bank and ICAP Shipping Involved in World's First Electronic Container Freight Swap Settled in USD. Saxo Bank, the trading and investment specialist, and ICAP Shipping, the shipping arm of ICAP plc, announced on Thursday that they were involved in the execution of the world's first electronic, voice-assisted trade of a container freight swap agreement settled in US dollars. The counterparties to the trade were Saxo Bank in Denmark as the buyer and a Netherlands-based trading house as the seller. ICAP Shipping was the broker of the trade. The container freight swap agreement was executed on ICAP's Webtrader platform, with manual input from ICAP Shipping brokers and cleared by LCH.Clearnet. The trade was executed by rugby star Lawrence Dallaglio during ICAP's 19th annual Charity Day.

The Steel Index (TSI) daily iron ore reference price hit its highest level in 12 months on Dec. 18, reaching $107.4 per dry metric tonne. This reference price, for 62% Fe content fines CFRFO China port, represents an 82% increase since March, when the price dipped to $59.1/dmt. The price hit its previous high in August, before falling back sharply to $76.1/dmt in September. Since then prices have been volatile, with this week alone seeing an increase of 5.2% despite falling freight rates on the key routes into China. “In my opinion, the levels we’ve seen in the spot market this week are as a result of tightness in supply and continued Chinese demand. I don’t see the market correcting for a least another week or two,” saif Jerry Yu a Hong Kong based trader.

In July 2002, Transas completed the installation of a large-scale simulation complex at the Meriturva Seafarer Educational Center in Helsinki, Finland. The procurement of this state-of-the-art simulator complex was achieved within the framework of the debt of the Russian Federation to the Republic of Finland based on the Russian-Finnish Inter-governmental Agreement of November 2000. With enhanced ship handling and VTS operator training facilities, the Meriturva center becomes one of the largest maritime training establishments in Europe. The new simulation facility comprises four full-mission navigational bridges; a VTS operator’s station…

Tribon.com recently released its newest version, 6.0, for easier attainment of information. The new layout presents the relevant product information in a clear and user-friendly overview on the screen making it easy for ship designers to search and find suppliers' product information. Some of the new features are: a new presentation of search results based on product types, a more intuitive product presentation page, easily accessible search tips and help for the Browse Search and Free Search functions, modified system menu to provide a better overview and quicker access to pages and functions and general layout is improved to give a better overview.

Caribbean Maritime Institute (CMI) www.cmi.edu.jm, (located on the Polisadoes peninsula) has selected Transas to supply new marine simulation systems for their training center. As a result of this simulator upgrade project endorsed for financing by the European Community, the CMI will receive the most technically advanced training facility in the Caribbean region. This will be the first full mission simulator complex installed by Transas in this area. According to the contract, Transas will deliver a Navi-Trainer Professional 4000 navigational bridge simulator with 7 visualization channels with the potential to expand that number to 9 channels; ERS 3000 Engine Room simulator; LCH simulator and TGS 4100 GMDSS simulator.