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Company Circular No:

LCH.Clearnet LTD Circular No 3462

Service Circular No:

LCH.Clearnet EnClear No 400

Date:28 April 2014
To:All LCH.Clearnet EnClear Clearing Members

Launch of new Capesize Timecharter and Capesize Option contracts in the LCH.Clearnet OTC Freight Forward Agreement (FFA) Clearing Service

Members are advised that LCH.Clearnet will be launching the new Capesize 5TC Average Swap contract and the associated Capesize 5TC Average Option contract on Tuesday 6th May 2014.

  1. The LCH.Clearnet contract specifications will be the same as the existing CTC and CTO contracts. However, the underlying basket of physical routes, used to calculate the 5TC Average has changed, together with the Vessel description upon which the calculation is based.
  2. The LCH.Clearnet registration fee for the new Capesize 5TC Average Swap and Option contracts will be $7/lot.
  3. The contract code in ECS and ClearWay will be CPT for the Swap contract and CPO for the Option contract
  4. The new Capesize 5TC Average, is based on the following basket of physical routes:
    • C8_14 (renamed trans Atlantic round voyage).
    • C9_14 (renamed Cont trip Far East).
    • C10_14 (renamed Pacific round voyage).
    • C14 (new route) - Delivery Qingdao via Brazil, redelivery China-Japan range.
    • C16 (new route) - Delivery North China-South Japan range, via Australia or Indonesia or US west coast or South Africa or Brazil, redelivery UK-Cont-Med within Skaw-Passero range.
  5. The new Baltic Exchange Capesize 5TC Average, is based on the following vessel description:
    • 180,000mt dwt on 18.2m SSW draft
    • Max age 10 years
    • 198,000cbm grain
    • LOA 290m Beam 45m
    • 15 knots ballast/14 knots laden on 62mt fuel oil (380 cst), no diesel at sea

For further information on the new Capesize 5TC Average physical routes and vessel, please contact the Baltic Exchange directly.

All Clearing Members already active on the FFA service will be automatically granted access to the new Capesize 5TC Average contracts.

If you have any questions please do not hesitate to contact me on +44 207 426 7460 or Isabella.kurek-smith@lchclearnet.com.

Yours sincerely

Isabella Kurek-Smith
Commercial Services