EEX Group has successfully reached an agreement with LCH Ltd (LCH) in London to novate, subject to member agreement, open positions in Dry Bulk Freight FFA and option contracts from LCH to its clearing house European Commodity Clearing (ECC) by the end of 2017.
Planning and technical preparation for the open interest transfer will begin immediately, ensuring that position holders electing to transfer to ECC from LCH experience a seamless transfer from one clearing house to another.
The agreement, which is subject to the necessary approvals from the EEX Supervisory Board, signifies a major development for the Dry Bulk Freight market and represents another significant milestone in the EEX Group’s strategy to expand in globally traded markets.
Dr Egbert Laege (pictured), Member of the EEX Management Board, says: “Since 2015, EEX Group has continued to develop and expand the products and services it offers to its clients trading seaborne commodities. This landmark agreement with LCH further demonstrates our belief in this market and will undoubtedly increase the benefits to organisations that have exposure in international supply chains and across multiple commodity products.”
EEX Group’s established presence in Europe, Asia and most recently in North America, ensures that it is ideally placed to lead further growth in the dry bulk freight derivatives market with an established network of brokers and a technical and regulatory offering which enables organisations across all geographies to access the benefits of the group’s clearing service easily and efficiently.