Braemar Shipping Services will launch a trading screen for dry freight derivatives at the beginning of April.
The move by the London-listed shipbroking group follows a big increase in users on the existing platform, Braemarscreen.com, which the shipbroker already uses to communicate price information.
The platform was launched in November 2020 as a tool to streamline the pre-execution process of trading forward freight agreements (FFAs).
Take-up has been strong with 400 daily users, said Sander Bots, managing director of the dry FFA derivatives desk at Braemar Atlantic Securities (BAS).
He explains that has fuelled demand to execute FFA trades on the platform.
“The request from the market to have further interaction with the screen has been very, very big,” Bots said.
“People say: 'I can see your prices on the screen, am able to interact with them as well?'”.
High take up
Bots expects a high take up from traders with the start-date pencilled in for 6 April.
The shipbroker is working with clearing house EEX and the Singapore Exchange to establish straight-through processing for FFA trades.
Live traded volumes are displayed directly on the screen, alongside current prices.
The development of the screen for trading reflects a gradual shift in the FFA business from pure voice broking to a mix that today includes messaging apps and screens, Bots said.
“Where our screen is very different from the historic screens is that it’s a hybrid platform,” he said.
“We’re not moving liquidity away from where it is right now and onto the screen.”
Development of screen
Braemar established its new portal in November 2020 in partnership with Zuma Labs, a software development and technology trading company headed by former panamax trader and shipping technologist Chase Bennett.
The shipbroker moved into the dry derivatives sector in 2018 with the acquisition of Atlantic Brokers and the recruitment of a dry cargo FFA team.
Bots expects the trading screen will support brokers and traders in freight futures markets.
“The intention when starting the Braemar FFA desk was to not take away market share from competitors, but to offer something new.”
He argues that the greater transparency provided by the screen will be beneficial for the market.
