Further to the Circular 29/19 and following the June working group meeting the Baltic is invitingmembers to submit feedback to the following recommendations.

a) A fixed value will be used to derive the 28K-6TC from the 38K-7TC starting 2 January 2020

b) The fixed value will be calculated as the average daily difference between the 28K-6TC and the 38K-7TC for the period of dual reporting (Mar 2018 – Dec 2019)

c) The Baltic will cease headline publication of the 28K-6TC on 24 December 2019 and continue to privately publish the derived 28K-6TC for as long as open interest exists in the FFA market
 
Details of how to respond are set out in the consultation paper, which is available to members from our website. The Baltic requests all replies to section 8 or comments by 16 August 2019.
 
The paper sets out the information presented at the working group and the methods considered. Feedback received by the Baltic through its consultation process to date (which remains ongoing) will be submitted to the Baltic Index Council (BIC) for its consideration. The BIC is then responsible for the final decision.
 
If you have trouble accessing a copy of the Consultation paper please contact jsykes@balticexchange.com
 
Background

In Q4 2015 the Baltic initiated a consultation which determined that the existing 28K-6TC Index would need to be updated and a new 38K-7TC was required as its successor.

The new 38K-7TC passed successfully through the various trial stages (figure 1)and went live on 1 March 2018. 12 months of dual reporting (28K-6TC and 38K-7TC) has completed.