1. Asia FFABA Freight Derivatives Forum Singapore
6 December 2012
The Future of FFA Markets Philippe van den Abeele; MD, Castalia Fund Management Limited Michael Nagler ; Head of Freight, EDF Trading Singapore Pte Ltd Raghu Raghunath; Senior Executive Vice President, Noble Chartering Group Mikal Bøe; Director Risk Management, Thoresen Shipping Services Morten Erichson; President, NOS Clearing ASA
Castalia Springs
A Source of Inspiration

2. Setting the scene Tonnage oversupply Uncertain macroeconomic picture
Master plan of Chinese shipbuilding
Increasing regulation
FFA brokerage shrinking pie
Baltic's position challenged
Diminishing role of financial institutions
Low markets/low volumes
Screens still backstage role
High trading & clearing costs
Castalia Springs
A Source of Inspiration

3. Back to the future Increase scrapping Improvement of world economy
Shipbuilders going bust
Will regulation stick?
Leaner and meaner brokers
Global opportunity for the Baltic
Increasing role of private money pools
It can only get better…
Will screens ever be prominent?
Transaction costs have to be reduced
Castalia Springs
A Source of Inspiration

4. Hurdles on the horizon Long period of economic stagnation
Shipbuilding is politically sensitive
Excessive regulation/witch hunt
Integrity of rival freight indices providers
Is financial freight too specialised?
Timing of shipping recovery
Is excessive regulation compatible with lower transaction costs?
Castalia Springs
A Source of Inspiration

5. Castalia Springs Limited
Investment Manager: Castalia Fund Management Limited c/o Close Brothers (Cayman) Limited 4th Floor, Harbour Place P.O. Box 1034GT 103 South Church Street Georgetown, Grand Cayman KY Cayman Islands Telephone: +1 (345) Fax: +1 (345) Subadvisor: Castalia Fund Management (UK) Limited 3 Pembridge Square, Flat C London, W2 4EW, United Kingdom Telephone: +44 (0) Fax: +44 (0) Managing Director: Philippe van den Abeele
Castalia Springs
A Source of Inspiration