As part of its continuing support for the maritime industry and the wider market, Baltic Exchange has released a new resource for Forward Freight Agreements (FFAs) to demystify freight derivatives and explain the mechanics of both setting up and then trading FFAs.
It has been written for the curious in mind and to help potential entrants better understand the entire FFA process from onboarding to contract settlement. It also serves as a business development aid for FFA brokers, who can use the Baltic’s resources as a starting point in discussions with new clients less familiar with the risk management space. The overview also encourages communication with the brokers to find out more information.
The Baltic’s new FFA resource is split into four sections:
– About FFAs
– How to trade an FFA
– The Role of the Clearing House
– Index Production, which highlights the important role of the Baltic Exchange and its Panellists in the FFA market.
Each section is further divided into sub-topics, which include links to find more information such as lists of Baltic FFA brokers and General Clearing Members. There is also a glossary of terms to introduce the various margins and fees involved in trading.
The Baltic’s FFA resource can be found on our website by clicking here or by clicking “FFAs” on the top taskbar. It is accessible to all who have interest, whether Baltic members or not.
Source: Baltic Exchange
