Fish Pool ABC English

Transcription

1 Fish Pool ABC English Fish Pool is operating Fish Pool a is regulated operating marketplace regulated for marketplace the trading for of the financial trading salmon of financial contracts. salmon Oslo contracts. Børs ASA Oslo owns Børs more ASA than owns 90 more % of the than shares 90 % of Fish the shares Pool ASA. of Fish Pool ASA.

2 Fish Pool Introduction 2 Salmon Exchange Licensed by the Ministry of Finance Only financial settlement 200+ Trade members 3,7 bill in contracts 2013, equals tonnes

3 Oslo Børs: Leading market positions in key sectors Energy No. 1 Europe Oil service Shipping No. 1 Europe Seafood No. 1 world wide 3

4 Agenda - Introduction - What is Fish Pool? - What is financial contracts and how do they work?

5 Introduction What is Fish Pool?

6 Risk development - history?

7 Our mission Fish Pool creates predictability in risk exposed fish- and seafood markets.

8 Fish Pool salmon exchange Exchange Buyer Seller Buyer Buyer Seller Seller Two products Futures contracts Options contracts

9 What is Fish Pool? Official Salmon Exchange, licensed by the Norwegian Ministry of Finance More than 200 registered trade members: fish farmers, exporters, VAP and financial investors 94,3 % owned by Oslo Stock Exchange

10 Trade volumes by segment Segment Farmers 33 % Exporters/Importers 14 % Value added processing 23 % Financial investors 30 % Sum 100 %

11 Transparency in prices and trading opportunities &

12 Introduction What is financial salmon contracts and how do they work?

13 What is a forward salmon contract? Fish Pool contracts result in: - Financial settlement only - No physical supply of salmon Fish Pool s product concept is defined as following: - A price position based on fresh salmon, gutted, SUP 3-6 kg FCA Oslo. - For a defined period: Months, quarters, years One of the parties compensates the other: - The difference between the contract price and the spot price (calculated as the Fish Pool Index TM ) is compensated to make both parties end up with the contracted price per kilo

14 Fish Pool ABC

15 Financial contracts a new concept Delivery and price Before Delivery Price Now

16 Example: Contract May15 at 39,00 NOK/kg Seller (Fish Pool) Contract 39,00 NOK/kg VAP (Buyer Fish Pool)

17 Example: Spotprice May15 is 40 NOK/kg 40,00 NOK/kg Exporter/Farmer VAP (Buyer Fish Pool)

18 Example: Summary Contract 39 NOK/kg Seller (Fish Pool) 1,00 NOK/kg 40,00 NOK/kg Exporter/Farmer VAP (Buyer Fish Pool)

19 Summing up: Which party must compensate the other? Seller compensates buyer Buyer compensates seller

20 Which contracts are working? Does not want to pay Can not pay Fixed Price delivery X X Financial contracts 20

21 Trading at Fish Pool: Online trading Broker desk assists Futures and options 21

22 Fish Pool Index TM Fish Pool Salmon Price 2015 settlement price: Input prices to Fish Pool Salmon Price 2015 (corrected to sales price Oslo in NOK/kg and EUR/kg) Nasdaq Salmon Index Exporters sales prices Collected by Nasdaq SSB Custom prices Custom declarations fresh gutted salmon Collected by SSB, Statistics Norway Sizes Correction Weighting SUP3-4 30% SUP4-5 40% SUP5-6 30% 0 80 % All sizes + 0,13 NOK/kg 20 % 22

23 Summary of financial salmon contracts For all simplicity: Fish Pool is an alternative to physical contracts Think of Fish Pool as - A benchmark - Supplier Why Fish Pool? - Anonymous trade - Security of settlement - Bigger market reach - Timing (keep good relations)

24 Membership with Fish Pool A Fish Pool membership is free of charge A signed Trade Membership Agreement gives the opportunity to trade at Fish Pool Nasdaq charges 0,15 NOK/kg for trading and clearing fee when a trade is executed A membership requires - The member must obey Fish Pool Rulebook and appendices - The member must provide Fish Pool with correct information The membership can be terminated with one month s notice period

25 More about settlement of Fish Pool contracts More information on settlement of Fish Pool contracts can be found in the part about clearing

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