The Baltic Exchange plans to remain a stand-alone bourse for freight derivatives despite the season of consolidation among other exchanges worldwide, according to Chief Executive Jeremy Penn, Dow Jones reports.
The exchange's indices are a global benchmark for the settlement of shipping freight derivative and physical contracts. Forward freight agreement derivatives are traded on the exchange and help traders hedge exposure to freight market risk.
"We are an exception [to this consolidation], and our independence is precious to us," Penn told Dow Jones Newswires on the sidelines of a function Wednesday.
Currently, Germany's Deutsche Boerse AG is engaged in merger talks with NYSE Euronext , while the board of NYSE Euronext on Sunday unanimously rejected a joint rival bid by IntercontinentalExchange Inc. (ICE) and Nasdaq OMX Group Inc. to break up the company.
London Stock Exchange Group PLC and Toronto-based TMX Group Inc.are also in merger talks that could result in a trans-Atlantic group heavy on resource and clean-energy listings.
And last week, the Australian government blocked an offer by Singapore Exchange Ltd. for ASX Ltd., the operator of the Australian stock exchange.
"We have the financial strength to manage on our own," Penn said, adding that the Baltic Exchange won't list its freight derivatives on other exchanges either.
"We are unique; by not listing our products on other exchanges, we protect the way we manage our indices and serve the market."
He said the exchange's indices are well grounded in the physical marketplace.
It also provides daily freight rate assessments on more than 50 dry and wet shipping routes, using a panel of international shipbrokers.
"We have a daily report on Asian shipping routes," but no Asia-specific freight index, he said. "It would be interesting to see whether we can do that."
The exchange's indices are a global benchmark for the settlement of shipping freight derivative and physical contracts. Forward freight agreement derivatives are traded on the exchange and help traders hedge exposure to freight market risk.
"We are an exception [to this consolidation], and our independence is precious to us," Penn told Dow Jones Newswires on the sidelines of a function Wednesday.
Currently, Germany's Deutsche Boerse AG is engaged in merger talks with NYSE Euronext , while the board of NYSE Euronext on Sunday unanimously rejected a joint rival bid by IntercontinentalExchange Inc. (ICE) and Nasdaq OMX Group Inc. to break up the company.
London Stock Exchange Group PLC and Toronto-based TMX Group Inc.are also in merger talks that could result in a trans-Atlantic group heavy on resource and clean-energy listings.
And last week, the Australian government blocked an offer by Singapore Exchange Ltd. for ASX Ltd., the operator of the Australian stock exchange.
"We have the financial strength to manage on our own," Penn said, adding that the Baltic Exchange won't list its freight derivatives on other exchanges either.
"We are unique; by not listing our products on other exchanges, we protect the way we manage our indices and serve the market."
He said the exchange's indices are well grounded in the physical marketplace.
It also provides daily freight rate assessments on more than 50 dry and wet shipping routes, using a panel of international shipbrokers.
"We have a daily report on Asian shipping routes," but no Asia-specific freight index, he said. "It would be interesting to see whether we can do that."