25APR2018 - NEWS - Baltic Exchange will introduce a modernised Code for freight market

The Baltic Exchange will be introducing a modernised code of conduct for shipowners, charterers and shipbrokers using the physical shipping and freight derivatives markets. 

Following a detailed review of the current arrangements led by law firm Norton Rose Fulbright with oversight by the Baltic Exchange Council and the Baltic Membership Council, the New Baltic Code has been drafted to bring together a set of principles and business practices which will be applicable to not only Baltic Exchange members, but also the wider market. There is a greater focus on fairness & competition, anti-bribery & corruption and benchmarking related issues than before.
   
The New Baltic Code will be binding on members of the Baltic Exchange and members will be expected to promote compliance amongst all market participants. Members of the Baltic Exchange will be expected to refrain from doing business with counterparties who deliberately refuse to adhere to the principles and good practice standards set out in the New Baltic Code. 

The New Baltic Code contains detailed examples of good and bad practices and includes new sections covering competitive activity and 'know your counterparty' procedures. 
The New Baltic Code is currently being reviewed by the Baltic Exchange Council and will be published later this year.