FEX - The Financial and Energy Exchange Group

The Financial & Energy Exchange group (FEX) is developing a suite of services for Asian energy, commodity, environmental and financial markets. Benchmark FEX products will include traditional Asian energy products such as crude oil and thermal coal. The offering will also extend to emerging energy and environmental products to help service existing and new liquidity pools. FEX’s market service offerings seek to further consolidate the ongoing electronification and derivitisation of markets.

Bilateral and cleared OTC, futures and option contracts for the benchmark energy and environmental products are targeted to be developed in H2 2008.

The FEX development effort for its ETC derivative market structure is near completion and on schedule for the integration testing of the full market solution.

The FEX ETC derivatives market will utilise NasdaqOMX technology, a premium matching engine technology supplier to leading exchanges. Amongst additional functionality NasdaqOMX are implementing for FEX is a proprietary derivatives matching algorithm. Market access will be supported via various messaging alternatives including native APIs, FIX and XML, depending upon market demands.

The Clearing Corporation of Chicago, the world's largest independent clearing house, will clear and settle FEX’s ETC derivatives market.

The FEX OTC platform, Mercari, utilises patented secure interactive technology. Mercari Direct is a proven robust fully integrated electronic system currently being used in the Australian OTC interest rate and foreign exchange swaps markets.

FEX, through Mercari, holds an Australian Market License (AML) for OTC derivatives markets in Australia and has applied to the Australian Securities and Investment Commission (ASIC) for approval to hold a full AML for derivatives.

FEX’s ownership is comprised of a consortium of energy, financial market participants, traders, and investors. Shareholders include West Australian and major mainland Chinese energy groups, OMX technology AG, AMB Holdings, the Allied group and the private equity firm Iron Mountain.

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