Derivative doldrums as speculators quit

Counterparty risk fears lead to slump in FFA trading volumes

Jamie Dale - Monday 24 November 2008

SPECULATIVE traders have now “left the building”, according to brokers, as the dry bulk derivatives market reverts back to being used purely as a hedging tool,

Weekly forward freight agreement volumes have fallen to lows of around 15,000-20,000 lots per week, compared with 60,000-80,000 just two months ago.

One lot is one day of time ...

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