Why use Clearing?
All transactions traded through Imarex are Cleared by NOS (The Norwegian Futures and Options Clearinghouse). The key reason for using clearing services, is that it provides near complete counterpart security when trading freight derivatives.
NOS is the first Clearing House to clear freight derivatives contracts, and today handles all cleared freight derivatives worldwide.
Since 2000, when the decision was made by NOS and Imarex to develop and launch a regulated market (trading and clearing together), both companies have jointly invested vast resources in developing a similar infrastructure to successful derivatives markets.
Clearing from NOS essentially removes the counterparty risk for principals when trading freight derivatives. (see below)
Despite major resistance from some parts of the industry, NOS and Imarex have proven that this infrastructure promotes liquidity and invites new participants to market.
In that concept, building an electronic marketplace with close connection to a clearinghouse, was a cornerstone. Imarex role in this cooperation has been to develop the trading liquidity and expand the member base, and NOS has been developing the right clearing and settlement solutions.
NOS offers clearing for all members of Imarex wether they trade via Imarex directly or indirectly via an FFA (Forward Freight Agreement) broker. Only at Imarex do principals enjoy "Straight through Clearing".
Straight through Clearing means that trades are cleared when done. This is because they are cleared when reported - or instantly in the case of Imarex transactions.