LORD MAYOR WARNS LONDON FREIGHT DERIVATIVES MARKET THAT CHANGE IS COMING
Newly elected Lord Mayor of London Alderman Nick Anstee has warned Baltic Exchange members that change is on the horizon for the freight derivatives sector.
Addressing the Baltic Exchange’s board of directors and guests at a lunch hosted by the Baltic Exchange today (18 November), the Lord Mayor said that the over-the-counter (OTC) freight derivatives market had evolved successfully, but “change is coming and it is important for the Baltic to be in the right position to respond to that change.”
He added:
“The City Corporation will continue to advocate the need for international co-operation on a global regulatory framework – with transparent, high and mutually recognised standards, in line with G20 commitments.”
Baltic chairman Mark Jackson said that the Baltic is: “looking hard at how the FFA market will need to evolve in its next phase, particularly in the context of screen trading and against the backdrop of a changing regulatory environment.”
Also noting that there were now a number of hedge funds active in both physical shipping and freight derivatives, the Lord Mayor explained that the Corporation is “arguing against some of the more unhelpful elements of proposed EU regulation on hedge funds and private equity.”
The Lord Mayor re-iterated the City’s commitment to supporting the provision of an attractive business environment and said that he recognised the mobility of shipping.
“We know that a number of shipping interests have reduced their presence in London. It would be very valuable for us to have some quantitative evidence of the scale of the migration. Part of this work will be trying to ensure that the UK’s immigration policy for skilled people will remain proportionate and fair.”
The Lord Mayor also called on the Baltic Exchange and its members to support The City UK, a new independent, practitioner led organisation being set up to promote the City.
ENDS
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Notes to editors
The Baltic Exchange
The Baltic Exchange is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 570 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic.
Baltic Exchange members are responsible for a large proportion of all dry cargo and tanker fixtures as well as the sale and purchase of merchant vessels.
Baltic Exchange services
• Independent, high quality dry, wet and gas freight market information
• Self-regulated chartering, sale and purchase and freight derivatives markets
• Central forum for competing freight market interests
• Framework ensuring high standards of business practice and co-operation
• London-based business facilities for members
• A collective voice for members worldwide
www.balticexchange.com
