Practical Freight Derivatives

A seminar held in association with the Baltic Exchange

The programme outlined below forms the basis of this one-day introductory seminar which has been offered in association with the Baltic Exchange since 1999. Further details will be available shortly.

Session Themes:-

Shipping Risk Management

  • Sources of risks in the shipping industry
  • Risk management and the use of derivatives in shipping
  • Comparison of risks across different shipping segments
  • Freight risk management tools available — FFA v CoA or Time Charter

The Futures Markets & Principles and Use of FFAs

  • OTC Swaps
  • Cleared Swap
  • Futures
  • Overview of the FFA market
  • Practicalities of trading FFAs — who trades , trading volumes
  • OTC, Cleared and Exchange traded FFAs
  • New regulations — CFTC and EMIR from Swaps to Futures Pricing and Settlements

Pricing and Settlements

  • The Baltic Index
  • The Baltic Forward Assessment (BFA)
  • Daily Mark to Market (M2M)
  • Contract Settlement

Correlations

  • Between FFA routes and the Physical Market
    • Trade routes and contracts available
    • Deciding which contract to use
  • Between Paper and Physical — choosing the right period and volume

The FFA Market in Practice

  • The Forward curves — firm and indicative
  • Bids and Offers — price matching
  • OTC v Screen trading
  • Trade flow process — OTC Cleared and Exchange traded
  • General Clearing Merchants (GCMs) — their role and function

Clearing Houses and Exchanges

  • The function of a Clearing House
  • Setting up a Clearing account
  • Initial Margins and Margin Calls
  • Default and Netting
  • Exchanges — mechanism and Futurization
  • Swaps to Futurization. What the new regulations mean and what implications they have in trading FFAs today

Freight Options

  • What are they?
  • How are they different from freight futures?
  • How do they work — volatility and pricing models?

FFA to Cover Exposures

  • Strategies for:
    • Charterers
    • Owners
    • Traders

Seminar information

To download a programme giving fuller details of the seminar,  click here.

For a Booking Form,  click here.

2017 Dates to be confirmed
The Baltic Exchange, St Mary Axe, London, EC3A 8BH

Seminar fee

The cost of this one-day seminar is £500 per person, fully inclusive of UK Value Added Tax, tuition, refreshments, and lunch. Accommodation is NOT included but our nominated travel agency company would be pleased to suggest alternatives in London at a range of prices.