Financial and Energy Exchange Group

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Fexglobal jl.gif

Financial & Energy Exchange
Fexglobal jl.gif
Founded 2006
Headquarters Sydney, Australia
Key People Brian Price, Executive Chairman
Products Energy, Commodities, Environmental Derivatives and Swaps
Website http://www.fex.com.au/

The Financial and Energy Exchange Group (FEX Group) is an Australian market structure design and operations company established in 2006. Its business aim is to build and operate regulated and globally competitive licensed marketplaces for cash and derivative products, with a focus on commodity, energy and environmental asset classes.

It is regulated by by the Australian Securities and Investments Commission (ASIC) as well as through the Reserve Bank of Australia's oversight of financial system stability. ASIC also supervises FEX Group as an unlisted public company. FEX Global’s markets will be cleared by CME Clearing (subject to regulatory approval).[1]

FEX uses OMX technology for its futures market trading engine.

Mercari OTC Swap Execution Facility

The FEX Group owns a 100% interest in the licensed OTC swap execution facility known as Mercari Direct.

Mercari was established in 2005 and since January 2011 has been licensed to offer OTC markets in commodity, energy, interest rate, foreign currency and environmental product. Mercari uses the Mercari eSEF technology to operate the market place and is supervised by ASIC. Further information can be found at www.mercari.com.au.

FEX Global

FEX Global was granted an Australian Market License by the Minister under s795B of the Corporations Act, enabling it to offer energy, commodity and environmental derivative products.

The FEX group partnered with CME Clearing to provide clearing services for the FEX derivatives market (subject to regulatory approval).

Partnerships and Providers

In 2008, FEX and Macquarie Group formed a company called enVex to design environment products for quotation on exchanges and markets in a move designed to help establish Australia as a regional carbon trading hub. The joint venture enabled companies to trade in emission permits under the Australian Emissions Trading Scheme on FEX market structures.[2] The Climate Exchange, operator of the world’s largest carbon emissions marketplace, took a 25 percent stake in enVex. In conjunction with enVex, the FEX Mercari Environmental ECN opened in November 2008. The first completed trade was for a AU$230,000 parcel of Australian Renewable Energy Certificates (RECs).

Also in 2008, Realtime Systems and GL Trade announced connectivity to FEX.

On June 30, 2010 FEX launched SIM Venture Securities Exchange Limited (SIM VSE), an equities market for clean-tech firms, renewable energy and other related companies. Established in 2010, SIM VSE is a joint venture between Financial and Energy Exchange Limited (FEX) and the National Stock Exchange of Australia Limited (NSX). Established in 2010, SIM VSE is a joint venture between Financial and Energy Exchange Limited (FEX) and the National Stock Exchange of Australia Limited (NSX)

In July of 2008 FEX selected Argus Media’s price indices to settle their new exchange traded and over-the-counter coal contracts. Open positions in FEX coal contracts will be settled in reference to the Argus Newcastle index which is based on the price of Newcastle (Australia) loading coal. The Argus fob Newcastle price is published in Argus Coal Daily International, which provides benchmark assessments for the international coal trading community.[3]

FEX and China Beijing Environmental Energy Exchange (CBEEX) announced an agreement in December of 2009 to work together on energy savings and carbon emissions reductions in Australia and China.

In September of 2015 FEX contracted with Trading Technologies to provide the exchange’s participants with the company’s TT trading platform.

In October of 2015, ORC connected to FEX.

FEX became an associate member of the Futures Industry Association on June 17, 2016 and confirmed CME Clearing as its clearing services provider on October 26 of that year.

Owners and Key People

The Financial and Energy Exchange ownership is composed of a consortium of energy, financial market participants, traders, and investors. Shareholders include major mainland Chinese energy groups, NasdaqOMX, AMB Holdings of Western Australia, FEX-China, the Allied Coal group and the private equity group Iron Mountain.

Key People :

References

  1. About FEX Group. FEX Group.
  2. Macquarie Group and Financial & Energy Exchange launch company to develop environmental markets. FEX.
  3. Financial & Energy Exchange chooses Argus coal indices for settlement. FEX.