SSY freight screen links to NOS for clearing

Shipbroker SSY has added a direct link to NOS clearing for clients of is freight derivatives trading platform, run in conjunction with globalCOAL.

The SSY / globalCOAL platform already offers dry cargo forward freight agreement (FFA) clearing through LCH.Clearnet, and SSY expects the link with NOS will increase volumes for wet (tanker) FFA trades through the screen. Dry FFA clearing will also be offered through NOS.

SSY is currently in talks to further enhance the platform by including a link to SGX clearing services. “For some time we have believed that a multi-cleared screen will be the way forward," says Mark Richardson, head of SSY Futures, adding that co-operation with NOS is an “important step towards better concentration of liquidity and transparency.”

UK-based LCH.Clearnet, Singapore’s SGX and Norway’s NOS represent the main clearers of FFAs. New York Mercantile Exchange (Nymex) also offers clearing, though client interest has been limited. SSY has already developed an application to give the SSY / globalCOAL screen straight through processing to the Nymex ClearPort system. “We haven’t gone live on that as yet because there hasn’t been sufficient demand for Nymex clearing,” says Duncan Dunn, director, freight at SSY Futures. “However, it’s something that can change at any moment – if that was the case we’d enthusiastically pursue it again.”

Screen trading will, according to Dunn, offer convenient access to the FFA market for interested parties outside the shipping industry, who often want to trade in smaller clip sizes than traditional players.

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