FEX Global, the new Australian futures exchange is about to go live on March 26, 2021.
The trading venue will offer centrally cleared futures and options for the energy, environmental, and commodity product classes, and mostly target the market participants in the Asia Pacific region.
The exchange will offer futures and options for both commodity and energy markets, as well as emerging renewable energy and environmental markets so that traders are able to optimize hedging and risk management.
Brian Price, FEX Global Executive Chairman, said: “Asia Pacific is the world’s fastest-growing region. This growth has been accompanied by an exponential pace of modernization and maturity of financial market participants. Our region can be further serviced by regulated, counterparty guaranteed market infrastructure.”
“It is our aim to help ignite the opportunities for risk management in energy, commodity, and environmental markets. This, alongside the work being done by other exchanges, will enable the region to maximize its potential for stable economic growth.
“Australia too is undergoing a profound and accelerating pace of change in new energy sources. This environmental asset class and new energy initiatives deserve, at a minimum, the same level of market integrity and product availability that is mandated for traditional energy and commodity markets”, Brian Price stated.
CME Clearing, part of CME Group, has been selected as the clearing partner of the futures exchange. Sunil Cutinho, President, CME Clearing said: “We are delighted to be working with FEX Global in Australia to extend central clearing in the Asia-Pacific region and we look forward to delivering CME’s clearing solutions to FEX customers.”
FEX Global will open with futures and options in Australian Power, Australian dollar iron ore, Japan, and ESPO crude. Later in the year, the futures exchange will include the trading of gas, solar, battery storage, environmental contracts, LGC, ACCU subject to the relevant regulatory approvals.