LONDON, June 20 London's Baltic Exchange and
clearing house LCH.Clearnet are in talks about a tie-up over the
Baltic's freight derivatives platform, the two groups said on
Volumes have remained low on the loss-making Baltex
multilateral trading facility since it started in June 2011. It
is the first central electronic marketplace for freight forward
"We are finalising arrangements with LCH.Clearnet, which
clears about 70 percent of the dry bulk FFA market, to enable
them to transform OTC (over-the-counter) derivatives into
futures in response to certain rule changes," the Baltic's
outgoing chairman Quentin Soanes wrote in the exchange's annual
report published on Friday.
LCH.Clearnet Ltd, a unit of the London Stock Exchange
, confirmed on Friday it was in discussions with the
Baltic Exchange about a tie-up.
(Reporting by Jonathan Saul; editing by Jason Neely)