The Imarex BDI Futures Contract

By trading the BDI Future contract, stock portfolio managers can protect the value of the shipping equities portfolio from upside and downside price risk of the broader dry bulk market. Typically, a shareholder of several stock listed dry bulk shipping companies, can sell the BDI Futures short, profiting from a falling BDI, to protect the value of his portfolio against a fall in freight rates which would drag down the value of his shares.

The Imarex BDI Futures contract can be traded in lots as small as $1 per tick – providing low barriers to entry

With BDI Futures, investors can trade the immediate future of the BDI in minimum lot sizes of USD1 per tick. This means that if the BDI is 10,000, 1 lot equals USD10,000. If the index rises by 1000 points, the buyer gains USD1000, and seller loses USD1000. BDI Futures will settle on the average of all Index points in a month, similar to the settlement of FFA contracts.

The Imarex BDI Futures contract was launched to fill a void left by the BIFFEX, a London-based freight futures contracts with settlement based on the Baltic Freight Index which was closed down in 2001, before the shipping boom of recent years started.

• BDI Futures contracts are available to all investors who holds a trading and clearing account with participating brokers.
• All contracts are cleared at NOS Clearing and settled on the average BDI value for each month.
• The BDI - Baltic Dry Index TM, is a trade marked index from the Baltic Exchange to which Imarex and NOS Clearing has a license to list, intermediate, clear and settle.
• Any reference to the BDI itself should include a reference to the Baltic Exchange and any reference to the Imarex BDI Futures contract should include a reference to Imarex.

For specifications of the Imarex BDI Futures contract, please see the fact sheet. For daily closing prices .

For further information on how to trade the BDI Futures contract, please contact any of the following