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Wednesday, 22 January 14
SGX SUCCESSFULLY LAUNCHED FREIGHT FUTURES


COALspot.com: Singapore exchanged announced that, SGX Freight Futures were successfully launched  on  20 January 2014, and the first trade was registered for clearing on SGX-DC with an initial trade of 20 lots of Capesize Time Charter Average futures contracts brokered by Clarkson Securities Limited between a European trading firm and a shipping company. According to SGX, Aggregate futures trades for the launch day amounted to 50 lots.

Other participants contributing on launch day included SSY Futures Limited which brokered trades between global trading firms Cargill International and Noble Chartering, SGX further said in its note.

To encourage increased participation in the freight markets, SGX is offering a discounted clearing fee on all its Freight derivatives until 31 July 2014. This discounted fee applies to all customers and is extended with a view to reducing their trading and clearing costs. Under the discount program, all freight products will be charged a flat rate of US$ 4.50 per lot (before GST) except for those freight products whose standard rates are lower than the discounted fee. 

In addition to market-wide clearing fee discount program, SGX also offers customer-specific incentive schemes to further reduce the impact of exchange clearing fees for those participants with higher trading volumes subject to terms and conditions.

Customers participating in both Iron Ore and Freight markets can also enjoy margin savings of up to 50% on inter-commodity spread positions. This is particularly beneficial for global traders who have underlying commodity and freight price risk management needs and those exposures can be hedged with efficient capital deployment resulting from margin offsets.



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