Baltic Exchange

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Baltic Exchange
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Founded 1744
Headquarters London
Key People Mark Jackson, CEO
Website www.balticexchange.com

The Baltic Exchange is an independent source of maritime market information for the trading and settlement of physical and derivative shipping contracts. The exchange also compiles and tracks several index products, including the flagship Baltic Dry Index, a measure of the price of shipping bulk cargoes around the world.[1]

The Baltic Exchange was acquired by Singapore Exchange (SGX) in 2016 in a deal that valued it at 87 million pounds ($112 million).[2]

The exchange has more than 600 member firms encompassing the majority of world shipping interests. Its members are responsible for a large proportion of dry cargo and tanker fixtures as well as the sale and purchase of merchant vessels. It is owned by about 380 shareholders, most of whom are members, and governed by a board of directors elected by shareholders and members.[3]

It is headquartered in London, with regional offices in Singapore, Shanghai and Athens.

Baltic Exchange is credited with helping expand British trade during the country’s imperial heyday.[4]

History

The Baltic Exchange traces its origins back to 1744, at a coffee house in the City of London, which served as a central meeting place for merchants and shipowners. Its first rules were established in 1823, and in 1857 became known as "The Baltic Company."In 1900 it merged with the London Shipping Exchange and became known as the Baltic Exchange.[5]

In 1985, the exchange launched the Baltic Freight Index, the first in a series of index products.

On 10 April 1992 the company's offices at 24-28 St. Mary Axe were destroyed by an IRA bomb in a van parked outside. Three people died, including Baltic attendant Tom Casey, and many were injured. The trading floor was rendered unusable. But they opened a trading floor several days later in Lloyds of London, and later moved to a different address on St. Mary Axe. When the 30 St. Mary Axe building ("The Gherkin") opened in 2004, the exchange moved in.[6]

The exchange launched Baltex in June of 2011 as the first central electronic marketplace for freight forward agreements (FFA), which allow investors to take positions on freight rates at a point in the future. In August of 2017 the exchange said it would close the platform at the end of the year after a review of strategic options following an announcement by LCH to end its FFA clearing services amid low volumes. [7]

In February 2016, the Singapore Exchange (SGX) submitted a non-binding offer to acquire Baltic Exchange for £160.41 in cash per share, representing a total consideration of £77.6 million.[8] In August of 2016 the Baltic Exchange agreed to be acquired by SGX.[9] [10] [11]

Key People

References

  1. Don't Abandon Ship: What Matters Is Why The Baltic Dry Index Is Falling - Forbes. Forbes.
  2. Baltic Exchange shareholders approve takeover by Singapore Exchange. Reuters.
  3. Singapore Exchange prepares formal offer to buy UK's Baltic Exchange - sources. Reuters.
  4. Baltic Exchange Gets a Bid From Singapore, and Others May Follow. The Wall Street Journal.
  5. History. The Baltic Exchange.
  6. History. Baltic Exchange.
  7. London's Baltic Exchange to close ship futures platform Baltex. Reuters.
  8. SGX updates on its bid for the Baltic Exchange. Singapore Exchange.
  9. SGX makes non-binding offer for Baltic Exchange, compiler of the Baltic Dry Index. Straits Times.
  10. Baltic Exchange and SGX extend talks. The Financial Times.
  11. SGX and Baltic Exchange: update on Proposed Acquisition. SGX.