SGX Reports on Freight Product Enhancements
OREANDA-NEWS. January 27, 2016. The following enhancements are slated for launch on 1 February:
Launch of C5 Futures
SGX is pleased to announce the launch of the SGX Baltic Capesize Voyage C5 Route Futures contract. The key contract specifications of the futures are similar to its corresponding OTC swap contract which is already listed. Both are fully fungible, sharing the same underlying index, daily settlement price, final settlement price and expiry dates. Once these contracts are submitted for clearing, the risk management treatment and pay-off for the two contracts are identical. Hence, a customer with equal and opposite positions in the futures contract and its corresponding swap contract will enjoy margin offsets.
Changes to Strike Interval for Option-on-Swaps
Following market feedback, SGX is pleased to announce that all freight option-on-swaps strike intervals will be amended to \\$1, in line with their corresponding option-on-futures counterparts. This applies to the Capesize, Panamax, Supramax and Handysize Time Charter Option-on-Swaps. Following this exercise, all freight option-on-futures and option-on-swaps will have \\$1 strike gradations in place.
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