Netting of Dry bulk futures

Principals trading on Imarex will then benefit from netting of margins on the following Dry bulk routes:

• PM4TC vs HM6TC
• C4 vs C7
   

Inter-commodity netting is being introduced to reduce the margin requirements for members who have opposing positions in different Dry bulk contracts, but in the same time period. The effect of the new netting regime will be significantly reduced margins for Dry bulk principals.

For example, a principal which has a short position (selling) in PM4TC Q205 and a long position (buying) in HM6TC Q205, will reduce the margin requirements for this spread position according to the correlation between the different Dry bulk indices.

For more information about "inter-commodity" netting for Dry bulk contracts, please contact Morten Erik Pettersen, Imarex Director of Exchange Development on +47 2389 4232 or email: morten.erik.pettersen@imarex.com