FREIGHT

MARKETS INTELLIGENCE

NO.1 DRY FFA BROKER 2010

ASIA RISK COMMODITY RANKINGS

NO.1 WET FFA BROKER 2009

ENERGY RISK COMMODITY RANKINGS

NO.1 DRY FFA BROKER 2008

ENERGY RISK COMMODITY RANKINGS

GFI CONTAINER DERIVATIVES

GFI is a leading provider of wholesale brokerage services and trading support products. It provides brokerage services, market data, trading platform and analytics software products to clients for a range of fixed income, financial, equity, freight and commodity instruments. ABOUT GFI FREIGHT GFI Freight provides brokerage services for more than 150 clients worldwide from dedicated derivatives desks in London, New York, Shanghai, Singapore and Cape Town. In each of these major centres, our highly experienced brokers provide coverage for the worlds leading oil and shipping companies, as well as banks and financial institutions. GFIs global synergies between its wet and dry FFA and physical freight desks and other commodity markets in which GFI operates (for example coal and iron ore) enables GFI to provide tailored hedging strategies by looking at total risk across a range of markets. Currently GFI is the market leader in both the wet and dry FFA market. By leveraging its skills and experience in these established freight derivatives market, GFI is in a strong position to offer clients insight into what is still a very unfamiliar area to some market participants, especially in the container market. GFI CONTAINER SWAPS TRADING GFI has been building liquidity and expertise in more than 90 markets, including freight, for over 20 years. GFIs container brokerage desk offers shipping lines, freight forwarders, shippers, trading houses, and financial institutions the ability to hedge and manage freight rate exposure, especially as a risk management tool. In the less commoditised markets, especially the fledgling container derivatives market, brokers perform an invaluable role for their clients, using their position at the centre of information flow to source the best price through skilled liquidity aggregation and transaction execution. KEY BENEFITS OF PARTNERING WITH GFI FREIGHT GFI Group is a leading intermediary with an unmatched presence in global derivative markets, especially within freight. Our focus on a client based formula, allows for greater depth of understanding of our clients risk exposure profile, enabling us to tailor a suitable hedging strategy. GFIs skills and experience in establishing existing freight derivatives markets puts us in a good position to help deliver to clients insight and information to what is still a very unfamiliar area for many market participants. GFI hosts a number of workshops that help prospective clients become more familiar with the derivative products as a risk management tool. Synergies that can be maximised between GFI Freight and other commodity markets in which GFI operate. Continued investment and development of research, trading and analytical technology.

FREIGHT
ABOUT GFI
GFI Group Inc. (NYSE GFIG) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments. Headquartered in New York, GFI was founded in 1987 and employs more than 1,800 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet, CreditMatch, GFI ForexMatch, EnergyMatch, FENICS, Starsupply, Amerex, Trayport, and Kyte.

CONTAINER DERIVATIVES A container derivative is a contract whose value is derived from the value of an Underlying against which it is settled. The Underlying in this case is the Shanghai Containerised Freight Index (SCFI). It is a form of a risk management tool, giving businesses the ability to hedge freight rate risk and flexibility to offer additional client services. THE PRODUCT
Container Freight Swap Agreements (CFSA)

Currently available OTC (nonexchange traded) with clearing at LCH.Clearnet in London and SGX AsiaClear in Singapore. Four principle routes that are being cleared include (all exShanghai): Europe, Mediterranean, US West Coast, US East Coast. Traded and cleared like traditional Forward Freight Agreements (FFAs). Time charter days and charter rates are replaced by container units and box rates. CFSAs are cash settled. THE UNDERLYING
Shanghai Containerised Freight Index (SCFI)

SCFI panel is comprised of 30 volunteer panellists 15 carriers and 15 local freight forwarders. Freight rate assessments are all-in rates, based on a general dry cargo container rate, export CIF, CY-CY, expressed in USD/TEU or USD/FEU (for US West Coast and East Coast services only). Published every Friday at 3pm, Beijing time.
Shanghai Shipping Exchange (SSE)

A CFSA is a forward dated swap in container freight rates by offsetting a physical position against a paper position. It is an agreement today to buy or sell a freight rate at a certain level (fixed rate) for a defined period in the future, which is settled at a future date at a price based on monthly average freight assessments (floating rate) taken from the SCFI during the settlement period.

Officially launched in Oct 2009, the new SCFI is a weekly spot rate assessment of the Shanghai export container transport market, published and administered by the Shanghai Shipping Exchange (SSE). It is a comprehensive index calculated from the weighted average of 15 individual shipping routes from Shanghai.

Established in 1996, it is a joint venture between the Chinese Ministry of Communications and the Shanghai Authorities, which provides service and agency support, data and research products and acts as the liaison for legal and legislative matters between the shipping industry and the Chinese government. In addition to the SCFI, the SSE also produces the China Container Freight Index (CCFI) and China Coastal Bulk Freight Index (CBFI). Originally, the CCFI and CBFI were a by-product of legal requirements to file freight rates.

CONTACTS

CONTAINER DERIVATIVES London +44 20 7422 1180 New York +1 212 968 2050 Singapore +65 6820 2980 containers@gfigroup.co.uk

www.GFIgroup.com/freight

GFI Group Inc. 2010. All rights reserved.This advertisement has been approved by GFI Brokers Limited, which is regulated by the FSA in the UK.GFI Securities LLC, a FINRA and NFA regulated firm.