Speaking at the signing of the agreement between the Baltic Exchange, its Freight Market Information Users Group (FMIUG) and Forward Freight Agreement Brokers’ Association (FFABA), the chairman of the Baltic Exchange’s Freight Indices and Futures Committee (FIFC) Michael McClure said:
“To have a successful freight derivatives market, the industry needs to demonstrate its continuing confidence in the Baltic route assessments and to work together to help grow this market. The continued growth of freight derivatives attests to the fact that market participants believe that the Baltic’s market assessments are completely robust. We encourage prospective new players to join this growing and ever important risk management market.” He added: “ I hope that this agreement will help to demonstrate how closely brokers and principals are working together to discuss issues such as the changes to the indices and the development of a standard contract.”
FMIUG chairman Pierre Aury welcomed the agreement commenting: “Over the last decade the FFA industry has had a successful track record of steady growth. By formalising the way in which we work together through the Baltic Exchange, we hope to increase further the liquidity of the market.”
FFABA chairman Philippe van den Abeele added: “The freight derivatives market has gone from strength to strength and this agreement will help ensure its continuing success.”
The full text of the joint statement can be found overleaf. A high resolution picture of the signing ceremony can be downloaded from http://www.balticexchange.com/content/About.jsp?page=about/pressroom/Pictures.htm
