First trade done on new US Gulf-Japan LPG cargo futures contract

London (Quantum Commodity Intelligence) - The first derivatives trade settled on the Baltic Exchange's US Gulf-Japan LPG clean tanker route assessment was cleared by CME last week, following its launch on the exchange at the end of April.

The trade counterparties were Gunvor and Vilma and it was brokered by Clarksons Platou Futures, said Baltic Exchange in a statement Wednesday.

Open interest on the contract was 10 lots, representing 10,000 mt, at Tuesday's close.

The contract is underpinned by Baltic Exchange's BLPG3 daily assessment representing a $/mt rate for cargoes of 44,000 mt moving from the US Gulf to Japan.

"The BLPG3 route is a welcomed addition to the LPG derivatives market, enabling market participants to take a position in the growing Houston – Asia trade, where the liquidity around the dynamic "take or pay" FOB contracts out of the US Gulf have become a key driver in the global LPG trade of today," said Christian Greenop, LNG & LPG derivatives broker at Clarksons Platou Futures.