Bloomberg – The new freight derivatives trading screen from the Baltic Exchange, a 267-year-old bourse that sets global shipping prices, will attract hedge funds and expand the $24 billion market, Citigroup Inc. (C) and Cargill Inc. said.
Baltex starts today after a three-year development and resistance from some brokers, who currently use phones to carry out about 95 percent of trading in forward freight agreements on future transport costs. It will improve pricing and attract more investors, said officials from Citigroup and Cargill, which have a combined 40 percent share of the FFA market.
