The Baltic Exchange has issued a release clarifying its position on a possible sale to the Singapore Exchange in the wake of Splash’s world exclusive today.
The UK institution says it “has entered into exclusive discussions” with SGX.
Looking to allay members fears over the sale, the Baltic said the SGX proposal includes commitments to retain the Baltic’s headquarters in St Mary Axe, London and “to preserve the Baltic’s current ethos as a membership organisation with member representation whose market activities are governed by the Baltic Code”.
Membership subscriptions will be maintained as will data fee levels for members for the coming five years. The multiple clearing house model will be retained too, the Baltic said in a release.
SGX clearing fees for FFA contracts will be held at current levels for at least five years.
Chairman Guy Campbell explained: “SGX has indicated that in the event its bid is successful, it would maintain the current model for the Baltic business and our presence and building in London, as the platform for the Baltic’s future growth. The proposed transaction would further strengthen the links between London and Singapore, two of the world’s leading maritime business hubs, to the benefit of all. The Board considers this proposal is an exciting development for the Baltic and all the stakeholders in the markets it serves, which secures the future of the Baltic’s role in the global maritime marketplace in the 21st century.”
Campbell’s comments come just as a survey carried on this site, with more than 500 respondents, indicated that the Baltic Exchange was not as relevant today as it was 20 years ago.