The Baltic Exchange anticipates receiving regulatory clearance this year for an electronic system it’s building for trading freight derivatives, said Chief Executive Officer Jeremy Penn.
“We would certainly hope to get approval this calendar year” from the U.K. Financial Services Authority, Penn said today at the Dry Bulk Shipping Market Outlook Conference in London.
The system’s software should be completed by the end of the year, permitting trading to start early in 2011, Penn said. The exchange had previously said it expected the system to go into operation by the end of this year.
“Timing isn’t important,” Penn said in an interview after a speech. “Getting it right is important.”
Negotiations remain in progress on the question of whether traders who use the exchange will be required to nominate brokers for every transaction, the CEO said. The outcome of those discussions probably “won’t delay the project,” he said.