ACM, a London shipping brokerage house, has partnered GFI Group to offer customers hybrid voice and online trading of freight derivatives.
Traditionally a voice brokered market, the new venture enables freight derivatives to be traded on GFI's online trading system, GFInet. The platform already lists numerous financial and energy OTC markets, such as North American, French, UK German, Dutch, Austrian and Australian electricity, and FAGC repo trading.
Initially, the venture will focus on forward freight agreements for 'wet' freight, primarily dealing with oil tankers. The following shipping routes will be supported by the derivatives: Arabian Gulf to Japan, West Africa to United States Gulf, North Sea to Continent, Arabian Gulf to Japan, Continent to United States Atlantic Coast and Singapore to Japan.
Keith Amato, director at ACM, says: "There has been growing customer demand for increased liquidity in the freight derivative market. We're extremely excited to act as innovators and introduce the proven hybrid trading model to the freight market."
Colin Heffron, European managing director at GFI, adds: "The proven hybrid brokerage model, where voice brokerage is supported by the GFInet online trading system, will provide oil companies and ship owners with direct access and visibility into the freight derivative market."