FREIGHT Investor Services (FIS) is launching the exchange cleared container futures on the Chicago Mercantile Exchange (CME), reports Hellenic Shipping News Worldwide.
Settling against robust benchmarks from The Baltic Exchange (The FBX Container Index), listed container futures bring counterparties to help the container market hedge against price volatility.
'The volatility that we have seen in the last 18 months has led many participants in search of hedging tools. Futures are that tool to fill the gap between inflexible physical long-term contracts and outright exposure to spot prices. The launch of these cleared contracts opens up the market to all participants, helping drive forward an efficient and universally beneficial market.' said FIS container broker Peter Stallion.
FIS declared a marked increase in inquiries for pricing and trading tools in the current volatile and uncertain market.
Said FIS MD of strategy Alex Pereira: 'Futures and FFAs are tools that have been used for both the dry freight, wet freight, and commodity markets for many years, providing an invaluable and widely used financial tool to help manage risk. If there was ever a time for this to be adopted into the container freight market, then it is now.'
Said Baltic Exchange chief executive Mark Jackson: 'The daily FBX Index provides the market with a credible and fully transparent reference point and is based on the world's largest global database of multimodal freight rates. The Baltic Exchange is authorised and regulated by the FCA (Financial Conduct Authority). Benchmark regulations ensure benchmark quality, integrity, continuity, and reliability.'
SeaNews Turkey
Settling against robust benchmarks from The Baltic Exchange (The FBX Container Index), listed container futures bring counterparties to help the container market hedge against price volatility.
'The volatility that we have seen in the last 18 months has led many participants in search of hedging tools. Futures are that tool to fill the gap between inflexible physical long-term contracts and outright exposure to spot prices. The launch of these cleared contracts opens up the market to all participants, helping drive forward an efficient and universally beneficial market.' said FIS container broker Peter Stallion.
FIS declared a marked increase in inquiries for pricing and trading tools in the current volatile and uncertain market.
Said FIS MD of strategy Alex Pereira: 'Futures and FFAs are tools that have been used for both the dry freight, wet freight, and commodity markets for many years, providing an invaluable and widely used financial tool to help manage risk. If there was ever a time for this to be adopted into the container freight market, then it is now.'
Said Baltic Exchange chief executive Mark Jackson: 'The daily FBX Index provides the market with a credible and fully transparent reference point and is based on the world's largest global database of multimodal freight rates. The Baltic Exchange is authorised and regulated by the FCA (Financial Conduct Authority). Benchmark regulations ensure benchmark quality, integrity, continuity, and reliability.'
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