Baltic Exchange authorised as benchmark administrator in the EU

Mar 19 2020


The Baltic Exchange’s subsidiary, Baltic Exchange Information Services Ltd (BEISL), has been authorised by the UK’s Financial Conduct Authority (FCA) as a benchmark administrator under EU Benchmark Regulation.

This means that the Baltic Exchange’s daily dry bulk, tanker and gas freight indices are regulated by an EU National Competent Authority.
 

“We are very pleased to have received authorisation from the FCA,” commented Baltic Exchange Chief Executive Mark Jackson. “This status ensures that financial institutions, including freight derivative traders using European clearing houses, will be able to continue using Baltic Exchange data for settlement purposes. Users of our index administration services can be assured of our strong governance, robust benchmark design, transparent methodologies and clear accountability. Our high standards of design and governance uphold confidence in the global shipping freight benchmarks that we produce.”

 

Having come into effect on 1 January 2020 for EU administrators, EU Benchmarks Regulation requires administrators of a range of benchmarks to put in place appropriate governance arrangements, to have effective controls to ensure the integrity of input data and to maintain adequate records. BEISL engages an accounting firm to conduct an annual review of its compliance while panellists are subject to regular audits.

 

To achieve its authorisation as a benchmark administrator with the FCA, BEISL has strengthened its governance arrangements, adding an independent BEISL Oversight Function.
 

There are now three bodies responsible for the oversight of the Baltic’s benchmarks: BEISL Board of Directors which has overall responsibility for the administration of the benchmarks; Baltic Index Council which brings together market expertise to ensure that the BEISL benchmarks reflect the economic reality of the shipping markets measured; and BEISL Oversight Function whose main role is to ensure regulatory adherence in all areas of benchmark related activities.

 



Related News

ABS to Class another four Very Large Ethane Carriers for Zhejiang Satellite Petrochemical

(Oct 07 2020)

Four new 98,000 cbm Very Large Ethane Carriers (VLECs) ordered by Zhejiang Satellite Petrochemical (STL) are to be built to ABS Class.



Oil tankers stripped of flags after breaching U.S. sanctions to secretly ship Iranian oil

(Aug 27 2020)

Four oil tankers have been stripped of their flags following an NBC News investigation.



Isle of Man Ship Registry’s QUALSHIP 21 status confirmed by US Coast Guard

(Jul 30 2020)

The Isle of Man Ship Registry has retained its place within the United States Coast Guard’s QUALSHIP 21 programme, designed to recognise foreign-flagged vessels that maintain the highest safety and quality standards.



DNV GL launches new certification in infection prevention for the maritime industry

(Jun 04 2020)

DNV GL, the world’s leading classification society, has launched a new certification in infection prevention for the maritime industry.



The Marshall Islands Registry strengthens its position as a quality organization amid COVID-19

(Apr 09 2020)

The Republic of the Marshall Islands (RMI) has been recognized on the United States Coast Guard’s (USCG’s) QUALSHIP 21 roster for the period 1 July 2020-30 June 2021, as reported in the recently published USCG 2019 Annual Report.



October 2020

Seafarer morale and safety - Neste and vessel performance - Maersk''s ZeroNorth