The Baltic Exchange will be introducing a modernised code of conduct for shipowners, charterers and shipbrokers using the physical shipping and freight derivatives markets.
The new Baltic Code, which has a greater focus on fairness & competition, anti-bribery & corruption and benchmarking related issues than before, has been drafted to bring together a set of principles and business practices which will be applicable to not only Baltic Exchange members, but also the wider market.
“Times have changed and Baltic Exchange members are operating in an environment with a greater focus than ever before on compliance. Shipping cannot expect to escape the heightened political and regulatory scrutiny that has been placed on the commodity markets since the 2007-2009 global financial crisis. By introducing this new code of conduct, we want to preserve confidence in and the integrity of the physical freight and freight derivatives markets; eliminate poor practices and raise standards across the entire market as well as increase the attractiveness of doing business with Baltic Exchange members,” said Mark Jackson, chief executive of Baltic Exchange.
The new code is based on five main principles including integrity of markets, fairness and competition, ethical business practice, good market conduct, as well as accurate and credible benchmarks.
The New Baltic Code is currently being reviewed by the Baltic Exchange Council and will be published later this year.
The Baltic Exchange was taken over by Singapore Exchange in a $108m deal in November 2016.