How it Works

Clearing operates through ECS, a stand alone browser-based system. The front-end to ECS is called ClearWay. All block trades eligible for clearing are either entered into ClearWay for registration with Baltex , or are registered via Cleartrade Exchange before flowing into ClearWay for clearing.  Approved Brokers can register the trades with one of the venues  between 07:00 hrs and 18:00 hrs London time.  ClearWay is open until 18:30hrs for confirmation of trades by Clearing Members.

Following receipt and confirmation of eligible transactions into the ECS system, trades are governed under the rules of LCH.Clearnet Rulebook.

FFA contracts held by LCH.Clearnet are Block Futures and are subject to initial and variation margining. On expiry all open positions are cash settled.

Initial margin rate levels are reviewed periodically by LCH.Clearnet to reflect inherent market volatility.  Daily and final settlement of Freight contracts is based on prices provided by the Baltic Exchange.  All existing LCH.Clearnet Clearing Members are eligible to clear  Freight products subject to approval.