LCH.Clearnet had record cleared volumes in its OTC Freight Forward Agreement (FFA) clearing service in May. Cleared volumes hit 25,000 lots by the end of the month, exceeding April, itself a record month for volume, by almost 50 percent.
LCH.Clearnet expects further volume growth as it continues to develop and enhance its service, whilst offering a competitive and cost effective service to its members and users, it said in a statement.
As part of that commitment, LCH.Clearnet says it will be scrapping cash settlement fees for FFA trades. Those were previously set at 50 percent of clearing fees.
And as part of its development plans, LCH.Clearnet will be introducing clearing for OTC Freight Options later this year. That service extension will initially cover options in the three main Dry Timecharter route: Capesize, Panamax and Supramax.
“This extension to our OTC Freight clearing service, allied to ever increasing volumes, highlights the important role played by the LCH.Clearnet clearing service in the growing Freight Derivatives Market and our readiness to broaden our range of products to meet customer needs,” says Peter Shepherd, managing director of commercial services at LCH.Clearnet.