Mercari

 Mercari Licensed Electronic Swap Execution Facility  Mercari Licensed Electronic Swap Execution Facility

Interest Rate Derivatives

Mercari currently operates efficient and orderly electronic markets in the following classes:

  • AUD Interest Rate Swaps (IRS) – BBSW 1
  • AUD Basis Swaps – BBSW
  • AUD Overnight Index Swaps (OIS) – RBA Overnight Rate 2
  • AUD Forward Rate Agreements (FRAs) – BBSW

Products covering other interest rate derivatives will be introduced as and when customer interest dictates.

Foreign Exchange Derivatives

The foreign exchange rate products offered on the Mercari Markets and the Index that they are set against are:

  • AUD-USD FX Swaps
  • AUD-USD Cross Currency Basis Swaps – BBSW and LIBOR 3 4

Products covering other foreign exchange derivatives will be introduced as and when customer interest dictates.

1 BBSW: Bank Bill Swap Reference Rate. Various Index tenors are available, including 1 to 6 months. Found on Reuters page BBSW.
2 RBA Overnight Rate: Commonly referred to as RBA30. Found on Reuters page RBA30.
3 LIBOR: London Interbank Offered Rate. Various index tenors are available from 1 to 12 months. Found on Reuters page LIBOR01.
4 The Australian versus US Dollar exchange rate is also used in setting the value of this derivative.

Commodity and Energy Derivatives

Mercari currently operates electronic markets in commodity and energy derivatives, including in broad hard and soft commodities categories.

Specific commodity products quoted on Mercari Markets are generally determined by market participants. However, current Mercari market quoted products include iron ore, freight, coal and crude oil (sweet and sour). Mercari's commodity derivatives product development plans accommodate other products (both cash and physically settled) as and when customer interest necessitates.

Mercari does not directly offer clearing and settlement services, but Mercari can send trades to various Clearing Houses if requested by the parties to a trade.

Environmental Derivatives and Certificates

Mercari currently operates electronic markets for environmental certificate. Current products offered on Mercari Markets include the following. These products are physically settled:

  • Australian Large-Scale Generation Certificates (LGCs)
  • NSW Green House Gas Abatement Certificates (NGACs)
  • European Union Allowances (EUAs)
  • Certified Emission Reductions (CERs)

Products covering other environmental derivatives and certificates will be introduced as and when customer interest dictates.

LGC Closing Rates

Mercari operates an end of day closing rates window for Large-scale Renewable Energy Certificates (LGC) utilising Mercari's proprietary eSEF technology. LGC contract specifications are available here.

For additional detail on the process or other information, please contact us.

LGC - Large-Scale Generation Certificates

LGC Closing Rates
Tenor Bid Offer Mid Point Index
Spot 28.50 29.50 29.000
Cal 14 28.90 30.25 29.575
Cal 15 29.85 31.60 30.725
Cal 16 30.55 33.55 32.050
Cal 17 31.45 34.50 32.975
Cal 18 31.45 34.50 32.975
Table Legend

Blue – Firm Tradable Prices
Green - Market Survey
Red – Calculation

Settlement prices are calculated in several ways. For a more details please see the methodology guide below.

Spot Closing Price History

Spot Closing Price History

Forward Price Curve Based on Mid Point Index

Forward Price Curve Based on Mid Point Index


Disclaimer
This price information is for informational purposes only and is provided on a "best endeavours" basis. The information contained is of a general nature and nothing herein shall be construed as financial advice or a recommendation or solicitation to purchase or sell any financial product. Any use of this information is done so at the user's risk only. Mercari provides no guarantees as to the completeness or appropriateness of this information for any purpose. If you receive this correspondence in error, please delete it from your system and notify the sender.


LGC Closing Settlement Price Methodology

Firm Tradable Prices

  • Method A represents firm prices tradable on screen by counterparties with investment grade credit ratings.
  • More information on Method A guidelines is available on request.
  • Method B will substitute if necessary.

Market Survey

  • Method B prices will be determined by a confidential market poll conducted anytime between 4pm – 4.30pm.
  • Three market participants, with credit ratings as defined in Method A, will be asked to provide prices that, in their opinion, reflect levels at which a willing but not anxious participant would buy or sell.
  • Method B prices are not firm and are reference levels only.
  • Method C will substitute if necessary.

Calculation

  • Method C employs Mercari's LGC Cost of Carry Model.
  • Method C prices are not firm and are reference levels only.