Imarex to launch monthly Timecharter drybulk contracts

  
The new structure will include the front month of each forward curve and three consecutive months. The nearest quarter contract will remain, and run parallel to the new monthly contracts.

From 5 April 2005, principals will specifically be able to trade the following in addition to the existing futures contracts on all CS4TC, PM4TC and HM6TC.

• May '05
• Jun '05
• Jul '05
• Aug’05
   

The decision to not list April’05 and an early listing of Aug’05 is an exemption of the general rules.

Contracts generally expire 18:30 CET on the 15th (or nearest prior business day) of every month, and are succeeded immediately by a new contract for the fourth month.

For example, on Friday the 13th of May the May'05 contracts will expire. September’05 contracts will start to trade at the same time. Straight through clearing will be available the following morning at 08:00 CET.

All new monthly drybulk contracts will settle daily with margin calls adjusted at the end of every business day.

Imarex is working to lower the barriers to entry in the drybulk freight derivatives market by pushing for smaller lot sizes trading in a more liquid market.

The tanker sector of the market has successfully adopted strategies of trading small lot sizes, but frequently and on screen with straight through clearing from NOS.

For more information how you can trade the new monthly contracts, please contact out drybulk desk in Oslo and Singapore, or Morten Erik Pettersen, Director of Exchange Development on +47 2389 4232 (morten.erik.pettersen@imarex.com)