A new association aims to provide an independent forum to unite participants in the freight derivatives market and represent their interests separately from the Baltic Exchange.
The Independent Freight Forward Agreement Association (IFFAA) will “provide a unique venue for open and unbiased discussions on issues and developments in FFAs”, according to the mission statement on its website, https://iffaa.org
This forum will promote “transparency, liquidity and fair competition across our markets”.
The aim is to coordinate between IFFAA members to provide a “common voice in their dealings with exchanges, clearers, policymakers and regulators”.
John Banaszkiewicz, founder and CEO of derivatives brokerage Freight Investor Services, has been instrumental in setting up the new body.
“Following our initial talks last year, we were greatly encouraged by how many of you came forward with support and ideas for this initiative,” he said in an email to would-be members on Tuesday.
“Since then, we have been brainstorming and consulting and can now share with you an early-stage plan.”
Banaszkiewicz is chairman of the FFA Brokers Association (FFABA) and sits on the Baltic Index Advisory Committee.
But the FFABA operates under the aegis of the Baltic Exchange. The new association marks a step away from the London organisation.
The IFFAA is consulting legal experts to ensure it complies with requirements such as competition laws and financial regulations, Banaszkiewicz added.
A full constitution document, to be published on the website soon, will include all its objectives, he said.
Membership is open to all individuals active in using freight indices to trade or for other business activities, according to the website.
The association plans to have two meetings a year, starting with a dinner in Geneva in February.
