LCH.Clearnet launches OTC clearing for freight derivatives

The new service covers four wet (crude and refined products) routes and nine dry (dry bulk commodities) routes. It is open to the entire FFA market, and allows OTC brokered or bilaterally executed trades to be registered directly with LCH.Clearnet for clearing.

The service provides the FFA market with all the benefits of broadly based central counterparty services: the elimination of counterparty credit risk, multilateral netting, improved operational efficiency and straight-through processin

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