The European Energy Exchange (EEX) from January plans to offer trade registration for 11 dry bulk freight contracts listed on its subsidiary, Singapore-based Cleartrade Exchange (CLTX).
Germany-based EEX, which offers European power, natural gas, coal and emissions trading products, a year ago bought a 52 percent stake in CLTX, which focuses on shipping products, in a bid to diversify both into Asian regions and more commodities.
Trade registration on the regulated EEX means that transactions in the products are concluded bilaterally and registered for clearing and settlement by EEX subsidiary European Commodity Clearing (ECC), under EU clearing rules.
“By introducing freight contracts, we will offer our customers a new asset class that perfectly complements our existing clearing offering for coal,” EEX Chief Executive Peter Reitz said in a statement on Wednesday.
The move would especially give European power and coal producers an additional tool for hedging freight rate risks for different ship sizes and routes, said CLTX Chief Executive Richard Baker.
The products will be listed in U.S. dollars and settled against indexes made available by London’s Baltic Exchange. They will be offered from Jan. 6, 2015.
EEX also said it had plans to offer iron ore, fertiliser and further coal contracts for trade registration in the future.
Leipzig-based EEX is majority-owned by Deutsche Boerse Group , Germany’s biggest exchange operator.