Straits Financial Successfully Cleared the 1st SGX OTC Container Freight Futures Contract

Straits Financial (SF) has successfully cleared the 1st SGX OTC Container Freight Futures Contract, powered by Braemar Screen, a bespoke trading platform for derivatives trading. Braemar Screen, the cutting-edge digital platform is developed by Braemar Securities and Zuma Labs, enabling market participants to trade container FFAs seamlessly, providing real-time market data, analytics, and trading capabilities.

Straits Financial also jointly collaborated with Pillar, a venture capital-backed commodity trading advisor, to hedge container risk on behalf of the American corporate that imports from Asia. Besides the fact that SF is appointed as the clearing firm for this transaction, the American corporate also holds a clearing account with SF.

At Straits Financial, we distinguish ourselves by promoting key and innovative contracts to support the financial and commodity derivative markets as well as providing products and services to fulfill the needs of every trader. With a strong presence in Asia and a deep understanding of the global markets, we provide value to our clients by enabling global access with a local perspective. SF provides a fully-integrated service for our clients to access the financial and commodity derivative markets and we strive to build lasting relationships with our clients.

Pillar is a commodity trading advisor, also commonly known as a CTA that protects global businesses from macroeconomic risk by automatically hedging their currency, commodities, and freight exposure. The team has previously designed global risk management strategies for large PE firms, hedged FX risk for F500 companies, and built trading platforms for institutional clients. Pillar’s vision is to give all businesses Fortune 500 level financial risk management, enabling them to focus on building their core business.

Mr Roger Quek, Chief Executive Officer and Managing Director of Straits Financial Services Pte Ltd, highlighted: “We are pleased to be able to play a part in reducing the market risks for container freight players. We wish for a smooth-sailing contract and look forward to greater volume in risk management for the market”.  

In light of the current rapidly growing global economy and dynamic financial landscape present opportunities for firms operating in the financial services sector, the collaboration between Straits Financial and Pillar comes at an opportune time. This commitment aims to instill confidence amongst the market participants.