Norwegian company launches salmon futures clearing Published: 20 April, 2007
FISH Pool ASA has announced the launch of the worlds first cleared futures contracts for fresh salmon. The announcement was made at this week’s Aquaculture Today 2007 conference in Edinburgh.
The announcement marks a new step in the fast growing seafood derivatives market.
The service is being launched at the European Seafood Exhibition in Brussels next week, where NOS Clearing ASA will join Fish Pool ASAs stand at the Norwegian Pavilion.
From now, financial seafood contracts can be traded in the market in the same way that soya beans, coffee, wheat and meats are traded on international exchanges. Introducing clearing of salmon contracts is a milestone in the development of the salmon market both in Norway and internationally, says Fish Pools Managing Director Mr Soren Martens.
Fish Pool says clearing gives full protection against credit risk to each party in a transaction. Because of the forward nature of financial commodity contracts, many participants have credit risk as a concern. The risk of default is a powerful argument for clearing. Whatever happens, each party will be guaranteed settlements from NOS Clearing ASA.
The great thing with clearing is that every participant can be anonymous when trading because there is no credit risk. This means they can trade with every other participant in the market place without concerns for credit, which helps to boost liquidity. Credit risk is not an issue when you are trading cleared contracts, explains
Mr Erik Flingtorp from NOS Clearing.
NOS Clearing says it is offering a tailored market solution with a choice for clients of direct membership at NOS or indirectly trading via existing clearing members.
We are building a solid seafood exchange for international participants where creating liquidity is alpha-omega for everyone. Clearing services from NOS Clearing is an important corner stone for us increase trading volumes at Fish Pool, says Soren Martens.
We continue also the present solution with bilateral trading at Fish Pool in NOK and Euro with direct settlement between the trading parties. This is important to give an easy introduction to financial trading. By showing flexibility offering two alternatives we satisfy the need for all companies in the salmon business, concludes Martens.
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