PwC Completes Assurance Engagement at Baltic Exchange Information Services Limited
PricewaterhouseCoopers LLP (PwC) has performed an assurance engagement over the service provided by Baltic Exchange Information Services Ltd (BEISL) in relation to how it measures the bulk freight markets is robust and the way the business adheres to various national and international regulations and principles.
The 91-page report includes a reasonable assurance opinion by the independent auditor over the design and operating effectiveness of Baltic Exchange’s controls for its market benchmark services, including data collection, systems and processes, calculations and publishing.
The opinion provided by PwC was issued over the Baltic Exchange’s controls for the period 1 February 2021 to 31 December 2021 in relation to the requirements set down within the UK Benchmarks Regulation, the IOSCO Principles for Financial Benchmarks, the IOSCO Principles for Oil Price Reporting Agencies as well the Baltic’s own Guide to Market Benchmarks. This is the second annual external audit, the first being the testing of the design and implementation of our controls as at 31 January 2021.
Baltic Exchange Chief Executive, Mark Jackson said:
“Despite another year of volatility and COVID related challenges, the Baltic Exchange continued to provide reliable assessments for our users throughout 2021. This important report provides further assurance to the users of our data that our information is audited, verifiable and completely independent. We will continue to invest in our information services by building our operational resilience and a continued commitment to market input.”
Baltic Exchange Chief Financial Officer, Mark Read added:
“As an early adopter of Benchmarks Regulation in the maritime sector, the Baltic Exchange is uniquely positioned to provide its customers and users with access to high quality commercial data which can be relied upon to settle physical and futures contracts.”
The Baltic Exchange has an established reputation for reliable, robust and transparent methodologies which is underpinned by strong index governance. The Baltic Exchange’s commitment to providing best practice standards in the integrity of index production, user confidence and governance has seen it substantially increase the range of data it now publishes to include container rates and air freight.
Whilst there is no regulatory requirement for this audit to be undertaken, the Baltic Exchange believes an independent assessment from a top-tier audit firm is in the best interests of our various stakeholders, clients and the valued users of our indices.
Members can read the full report here. Other parties should email [email protected] to request a copy of the report or if they require further information.
For further details please contact Bill Lines, Navigate PR.
T: +44 (0)7970 730521
Notes to editors
The Baltic Exchange represents a global community of shipping interests. These include shipowners, charterers and shipbrokers who are collectively responsible for handling a large proportion of the world’s dry cargo and tanker fixtures, freight derivative trades as well as the sale and purchase of merchant vessels.
The Baltic Exchange is regulated by the UK’s Financial Conduct Authority (FCA) pursuant to the EU Benchmark Regulation. It is the trusted provider of data for the settlement of physical and derivative freight contracts, underpinning risk management tools for the shipping and transportation markets.
Founded in 1744, the Baltic Exchange is headquartered in London with regional offices in Singapore, Shanghai, Athens, Stamford and Houston.
In 2016 the Baltic Exchange was acquired by Singapore Exchange ("SGX").
Baltic Exchange services:
• Daily benchmarks for dry, wet, container and gas freight markets
• OPEX, S&P, ship recycling & forward assessments
• Air cargo assessments
• Escrow and dispute resolution support
• Executive training via the Baltic Academy
• Networking for shipping professionals