News

Objections to container swaps have centred on a perceived threat to long-term carrier contracts. But a liquid container swaps market would increase carrier contract participation, encourage the formation of long-term relationships and simultaneously reduce the risk of default.

Freight Investor Services has released a Container Freight Derivatives Calculator which enables players in this nascent market to calculate what hedging requirements they may have, based on their physical market exposure.

FIS is pleased to announce the introduction of a new index for settlement of fertilizer swaps in response to the development of the swap market in Asia.

The launch of an OTC Clearing Service for Container Freight Swap Agreements (CFSA) by LCH.Clearnet represents the next important milestone in the evolution of this emerging market.

After more than 40 years of painfully slow annual price negotiations for the supply of iron ore to the world's steel makers, this 1.3 billion tonne market - of which China absorbs the majority, is going financial.

Freight derivative volumes are rebounding to 2008 levels on increased iron ore shipments and volatile freight rates, although values are lower, managing director of brokerage FIS John Banaszkiewicz told Reuters Insider.

To see the interview click here: http://etv.thomsonreuters.com/link.html?ctype=group_channel&chid=3&cid=85149&shareToken=Mzo4NTE0OQ%3D%3D%0A

The first FFA trade on the Supramax India-China timecharter route has been completed between principals Morgan Stanley and Cargill International SA Geneva, brokered by FIS.

FIS brokes early for Christmas as C3 and C5 markets gather momentum

FIS Ltd (Freight Investor Services) is pleased to announce the completion of the first fertilizer swap trade cleared at LCH.Clearnet.

Leading clearing house LCH.Clearnet has officially launched clearing services for the FIS cash-settled fertilizer swap. The go-live today for central counterparty clearing provides another dimension to trading in the chemical fertilizer market.

FIS, the derivatives broker and LCH.Clearnet will launch an OTC clearing service for the fertilizer swap market on October 16, 2009 in a move that will increase transparency and liquidity and greatly reduce counterparty risk.

Traders working positions in freight derivatives and iron ore swaps need no reminder that the first half of 2009 has been a roller-coaster ride. But market players are now able to realise some cost efficiencies, with clearing houses in London and Singapore offering inter-commodity spread credits.

London. There is a new investment darling on the block and its name is iron ore. As unglamorous as this new kid in the class might sound, the price of this raw material, fundamental for the production of steel, has been growing steadily in the past few months.

FIS (Freight Investor Services) in cooperation with the London Clearing House (LCH.Clearnet) is pleased to announce the launch of a cleared CIF China cash settled iron ore derivative.

LCH.Clearnet is set to launch clearing of over-the-counter (OTC) iron ore swap contracts. The service will be introduced in May 2009. Iron ore is one of the main raw materials used to make steel. Iron ore swap contracts are vital in managing risk against volatile price movements. The introduction of clearing is essential for further growth of this market, as it will increase trading capacity and reduce concerns over counterparty risk.