Baltic Exchange closing its freight derivatives platform Baltex

Baltic Exchange closing its freight derivatives platform Baltex

The Baltic Exchange will close its freight derivatives platform Baltex at the end of the year.

Baltex was launched six years ago as the first central electronic marketplace for freight forward agreements (FFA), a space that has since become crowded with competing platforms.

The Baltic Exchange was bought out by the Singapore Exchange (SGX) last year and has since set about reviewing its business operations.

“Despite Baltex’s closure, the Baltic Exchange remains at the centre of the global FFA market and is steadfast in its support of it,” Baltic Exchange’s chief executive Mark Jackson said in a statement.

Commenting on the news, Splash columnist Neville Smith said: “It looks like a summer of readjustment in the FFA market. The withdrawal of LCH.Clearnet and now the closure of Baltex are somewhat against the trend which is seeing better volumes in freight and iron ore and finally some concerted growth in interest for hedging in Asia.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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