Trading Statistics August 2009

Tanker and Dry Bulk Derivatives

While overall freight derivative volumes were up 5% from the previous month, trade value increased marginally - by 1 % month-on-month, to 608 million USD. The volume of freight options trading, meanwhile, was up 247 % month-on-month, to 8 117 lots. Tanker trade value was down 6 % from July 2009, to 2 06 million USD, as tanker trading volume slipped 9% month-on-month, to 28 149 lots. Dry Bulk freight rates were volatile during August, with the settlement rate recovering slightly towards the end of the month. Dry bulk freight rates can be illustrated by the Baltic Exchange Dry Index for spot rates, which was 3 350 at the end of July and 2 421 in the end of August 2009.

Freight Option Open Interest Hits Record

Freight options activity was up sharply both month-on-month and year-on-year, as freight options open interest hit a record high, breaking above 45,000 lots for the first time.  The overall volume of freight derivatives, meanwhile, at 28 149 lots , was up 5 % compared to the previous month. On the energy  side, the number of transactions concluded was up 14 % on the same month last year, at 24 370.

"It's great to see freight options open interest topping 45,000 lots last month - that is a record for us and represents an increase of almost 50 % year-on-year," says Herman W. Michelet, Chief Executive of Imarex.

Freight Open Interest

At the end of the reporting month, open interest for freight options was up 46 % year-on-year, to 45 113 lots. Open interest for dry bulk was 22 539 lots and for tanker futures it was 28 740 lots. The open interest is the total number of lots which remain to be liquidated by either close-out trades or delivery at NOS Clearing. NOS Clearing counts only long positions. Other clearing houses often count both long and short positions into the open interest.