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The European Energy Exchange (EEX) intends to move into the dry bulk freight futures market with the introduction of a number of key product enhancements as well as a significant reduction in transaction fees.
From 26 November 2015, the number of already listed freight futures maturities which EEX offers for Trade Registration will increase to 84 consecutive months for Dry Bulk Time Charter Basket Routes and 36 consecutive months for Dry Bulk Trip Time Charter and Dry Bulk Voyage Routes.
In response to market demand, the freight futures product suite will be extended with the Capesize TC5 contract, which in contrast to the Capesize TC4 contract, includes the C9 Brazil-China route. Furthermore, with the reduction in transaction fees, EEX will now offer the most competitive fee structure on the freight market. The product offering will be completed with option contracts which are planned to be introduced in the first quarter of 2016.
These improvements will enable the EEX participants with greater flexibility and economic efficiencies when hedging their dry bulk freight risk in the long term. Customers will also benefit from the existing Straight-Through-Processing (STP) service as well as regulatory security as all EEX freight contracts are classified as futures contracts under EMIR.
Steffen Köhler, Chief Operating Officer, of EEX says: “With our new product offering and our reduction in transaction fees, we are showing our serious commitment to the freight market. Being able to clear across markets through one exchange membership benefits the customer greatly and takes us one step further in offering our customers a credible one-stop-shop proposition.”
