By Jonathan Saul

LONDON, May 11 (Reuters) – Talks between the Baltic Exchange and quite a few suitors are persevering with, however any potential purchaser of the enterprise should present assurances that its central function in transport won’t be “undermined,” the Baltic’s chairman stated on Wednesday.

On Feb. 26 the privately held Baltic Exchange confirmed it had obtained quite a few “exploratory approaches” after the Singapore Exchange Ltd (SGX) stated it was in search of to purchase the enterprise.

Both statements got here a day after Reuters reported the Baltic had held talks with SGX and different potential consumers together with CME Group, ICE and Platts. Sources had estimated the Baltic’s valuation was $120 million.

Baltic Chairman Guy Campbell advised the alternate’s annual cocktail occasion occasion in London that negotiations have been ongoing, however stated he was “not in a position to expand on that right now.”

“I can assure you that we will not proceed beyond the negotiation stage and make recommendations without first consulting with all of you – members, shareholders, panel members, end-users,” Campbell stated in a speech.

“Any potential acquirer will need to provide assurances that our 270-year legacy, our leadership position – both in London and around the world – will not be undermined.”

Many segments of transport – together with dry bulk commodities – are combating the worst market situations in a long time, which has claimed casualties.

An acquisition of the Baltic, which was based in 1744, would give the successful bidder possession of the trade’s benchmark indices – which could possibly be additional commercialized – and larger entry to the multi-billion-dollar freight derivatives market, often called FFAs.

“They will need to deliver an offer that does not disrupt the successful FFA market which relies on our independent, rigorously compiled indices,” Campbell stated in ready remarks.

Clearing homes and exchanges are all in search of a solution to distinguish themselves at a time of rising regulatory scrutiny and weak commodities markets. Buying the Baltic would permit any of these entities to diversify their actions into freight.

In March, sources advised Reuters state-run conglomerate China Merchants Group turned the most recent contender to make a casual bid to the Baltic. Last October, sources stated the London Metal Exchange (LME) had made an method to purchase the Baltic.

The Baltic, owned by round 380 shareholders, many from the transport trade, produces each day benchmark charges and indices which can be used internationally to commerce and settle freight contracts.

In 2011, the Baltic – through a completely owned subsidiary – launched the primary central freight derivatives platform, known as Baltex. (Editing by Veronica Brown and Adrian Croft)