Clearing the way for competition

Clearing has become a hot issue in the freight derivatives market, with several clearers entering the market recently in response to increased demand for credit risk mitigation.

"We are seeing increased interest in clearing," says Duncan Dunn of ship-brokers SSY Futures, "both from the existing over the counter (OTC) traders, who are enthusiastic about clearing because it simplifies their positions, and from new players."

These new players are a mixture of natural hedgers and institutional inv