UK´s SSY shipbroker, formerly known as Simpson Spence Young, claims that has concluded the biggest-ever iron ore futures trade.
The London-headquartered broking house said its SSY Futures commodities arm rolled a five million metric tonne position from a 2023 prompt date to 2024, generating a total futures volume of ten million metric tonnes.
The trade involved counterparties from both the physical and financial markets.
SSY Futures is a key player in the freight and commodity derivatives space.
Jamie Pearce, global head of derivatives at SSY, said: “As the market continues to develop, we are seeing more and more clients trade in large blocks and we believe that today’s transaction is an important milestone in an already active market. As a leading player in commodity derivatives, SSY Futures is the go-to broker for liquidity in trades above normal market size and can assist clients with significant positions to confidently transact when size and price are so market sensitive”.
Meanwhile, the shipbroker SSY is cooperating with carbon market specialist CF Partners, to give to its client’s access to CF Partners full suite of carbon risk management and trading solutions.
The new solution, which the shipbroker announced earlier this year, will ensure regulatory and operational compliance ahead of the maritime sector’s entrance into the EU ETS, as the shipbroker claims, and also carbon market access for operators in the maritime sector.
In 2022, the EU ratified its decision to include the shipping sector into the European Emissions Trading Scheme, under the “Fit for 55” package.
The scheme will target 100% of emissions from voyages between EU and EEA ports and 50% of voyage emissions on international routes to or from EU/EEA ports.
From 2024 onwards, there will be a phased-in compliance requirement for operators to purchase an increasing percentage of EU Allowances (EUAs) to cover verified emissions (40% in 2024, 70% in 2025 and 100% in 2026).
As a consequence of the legislation, those affected will now have to understand the complexities of the regulatory requirements, the EU carbon market and contractual processes in order to be fully compliant.
The new SSY service will enable procurement and warehousing of EUAs on behalf of its customers, thereby alleviating the operational and regulatory challenges that operators would otherwise face as a consequence of the new legislation.
