The Nasdaq Commodities freight derivatives offering comprise of dry and tanker Futures (FFAs, Forward Freight Agreement) and Options contracts, and Fuel Oil Futures contracts listed on Nasdaq Oslo ASA and cleared by Nasdaq Clearing AB.
- Continuous trading in the electronic trading system from 08.00 to 18.00 CET (07:00-17:00 GMT)
- Trading and clearing of block and EFP/EFS trades from 07:00 until 19.00 CET (06:00-18:00 GMT)
- UK Trading Calendar
The contracts provided are linked to standardized freight routes or baskets and types of vessel, which makes them suitable as hedging tools for the shipping industry, commodity traders, energy companies, miners, grain houses etc. They also ensure trading opportunities to financial investors in line with the current regulatory requirements. The product suite was previously cleared by NOS Clearing from 2001 until it was aquired by Nasdaq in July 2012.
Why Clear Freight Derivatives with us?
- Global product offering
EMIR Compliant clearing house
- Competitive margin netting for freight contracts
- Netting and margin offsets between all markets
Effective risk management
removal of counterparty credit risk
Nasdaq Commodities offers standardized Average Rate Future contracts with monthly delivery. The contracts are cash settled with daily mark-to-market settlement in the trading period and a spot referenced settlement upon delivery.
Nasdaq Commodities offers standardized european Options with automatic exercise and delivery of Future on expiration day. Option contracts are valuable tools to manage risk and hedging strategies.
We know that capital efficiency is a core focus for our customers. Nasdaq blocks are classified as Futures contracts according to Dodd-Frank and they are exchange transactions. According to EMIR, the Nasdaq blocks are Exchange Traded Derivatives, not swaps, which create advantages for the traders. Block trades and Exchange of Future for Swaps (EFS) can be reported to the Exchange by Approved Block Blockers on behalf of clients.
Trade publication is available under Market Prices >> where tanker freight transactions are reported intraday and dry freight and fuel oil transactions at the end of the day.
Nasdaq Clearing is the contractual counterparty in all contracts traded at Nasdaq Commodites' financial market. Clearing guarantees the financial settlement. The daily settlement is automatic, and members are connected to the settlement system through a variety of multinational settlement banks. Read more >>