BALTIC EXCHANGE COMMITS TO BUILDING BALTEX BUSINESS
The Baltic Exchange reaffirmed its commitment to its freight derivatives trading platform Baltex at its Annual General Meeting today (Thursday 5 July 2012).
Launched in June 2011, membership of Baltex has grown from eight to 33 principal members, but against the backdrop of a poor market, trading volumes remain low. Regulated by the UK’s Financial Services Authority as a Multilateral Trading Facility, Baltex provides live dry FFA prices and on-line execution and enables error-free straight through processing to the international clearing houses.
Addressing shareholders at the Baltic Exchange, Chairman Mark Jackson said:
“We remain optimistic that Baltex will be successful and is an opportunity to serve our members well while potentially creating substantial shareholder value over time. Run by and for the shipping market, Baltex is a solution to the needs of members who are becoming less comfortable with pure OTC markets and offers the sort of centralised, transparent derivatives marketplace which financial market regulators are seeking.”
The Baltic Exchange will continue to encourage usage of Baltex, maintain regular dialogue with traders and their management and work with brokers to make the system as attractive to them as possible.
Turning to the mainstay of the Baltic Exchange’s income and activities, the publication of freight market information and the provision of membership services, the Baltic reported another solid year with membership levels standing at 599 companies, revenues up at £5.5m (2011: £5.3m) and a pre-tax profit of £1.6m (2011: £1.3m).
Baltic Exchange shareholders approved the Directors’ recommendation that a final dividend of £1.75 per ordinary share of 50p for the year be paid.
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Notes to editors
The Baltic Exchange is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of 600 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic.
Baltic Exchange members are responsible for a large proportion of all dry cargo and tanker fixtures as well as the sale and purchase of merchant vessels.
In June 2011 the Baltic launched Baltex, an FSA approved Multilateral Trading Facility for dry freight derivatives. Baltex brings the dry bulk FFA market to one central location, enabling traders, brokers, shipowners and charterers to trade electronically.
Baltic Exchange services
• Independent, high quality dry, wet and gas freight market information
• Self-regulated chartering, sale and purchase and freight derivatives markets
• Central forum for competing freight market interests
• Framework ensuring high standards of business practice and co-operation
• London-based business facilities for members