SuperDerivatives launches freight derivatives service

Source: SuperDerivatives

SuperDerivatives (SD), the derivatives benchmark and multi-asset front office system, is launching a front-to-back office freight derivatives service, enabling customers to access accurate pricing and manage risk in the volatile shipping market.

SD will add dry and wet cargo Forward Freight Agreements (FFAs) and options on FFAs on a very wide range of ocean routes to its commodities and energy solution, enabling shipping companies to access real-time independent pricing, risk management, mark to market valuations, pre-trade analysis tools and extensive portfolio management capabilities.

Western Bulk, one of the world's leading shipping companies with a 60-strong commercial fleet, has already signed up for SD's new service to strengthen its ability to set a market-accurate future price for carrying commodities at sea.

SD provides the widest coverage of commodity and energy derivatives on a real-time basis, from vanilla to the most advanced structures, across a huge range of underlying assets. The addition of FFAs builds on the company's existing presence in commodity derivatives.

Amitai Ratzon, Sales Director for the Nordic Region at SD, comments: "We are very pleased that Western Bulk has chosen our platform to risk manage their exposure in freight as well as fuel and currency rates. The fact that one of the largest shipping companies in the world selected our product is further evidence of the competence of our solution for the shipping sector.

Ravit Mandell, Vice President for Products, adds: "The addition of FFAs to SD fulfils a genuine market need, providing the real-time data, content and tools to manage shipping derivatives efficiently and effectively. SD now enables shipping companies to manage all their risk and hedging on one solution: freight, fuels, currency exchange rate and interest rates exposure are all managed on our front office system on a real-time basis, which also fulfils all the requirements for compliance and regulation."

Egil Husby, Chief Risk Officer at Western Bulk, comments: "Risk management is a central element of our operations. We were very impressed with the accuracy of SD's valuation for dry cargo freight options, allowing us to check prices before going to market.

"In addition, the risk and portfolio management tools give us a complete solution to managing our derivatives business. After extensive testing and surveying the market it was obvious that SD has by far the best offering to the shipping industry, at a very reasonable cost compared to the alternatives."

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