Products on Mercari
Mercari offers markets in Commodities, Energy, Environmental, Interest Rates, Foreign Exchange derivatives and certificates.
As an OTC market trading platform, products traded on Mercari have been uniquely designed to meet the specialist requirements of OTC market participants. Through its innovative and flexible systems, Mercari has proven itself to deliver fast, efficient, relevant and reliable market infrastructure.
Products Currently Approved
Please refer to the documents below for current approved products.
Market Guidance Notes
Terms of Trade
Riemann Agricultural Products
Riemann Cotton OTC
Mercari currently operates efficient and orderly electronic markets in the following classes:
AUD Interest Rate Swaps (IRS) – BBSW1
AUD Basis Swaps – BBSW
AUD Overnight Index Swaps (OIS) – RBA Overnight Rate2
AUD Forward Rate Agreements (FRAs) – BBSW
Products covering other interest rate 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.
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 LIBOR3 4
Products covering other foreign exchange derivatives will be introduced as and when customer interest dictates.
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
Mercari currently operates electronic markets in commodity and energy derivatives, including in broad hard and soft commodities categories.
Commodity and energy products quoted on Mercari markets are generally determined by market participants. Current Mercari market quoted products include Riemann agricultural products. Mercari's commodity product development plans accommodate other products (both cash and physically settled) as and when customer interest necessitates.
Mercari does not offer clearing and settlement services, but Mercari can send trade information to various clearing houses and post trade processing services if requested by the parties to a trade.
Mercari currently operates electronic markets for environmental certificates. Current products offered on Mercari Markets include the following. These products are physically settled:
Small Scale Technology Certificates (STCs)
Australian Large-Scale Generation Certificates (LGCs)
Products covering other environmental derivatives and certificates will be introduced as and when customer interest dictates.
LGC - Large-Scale Generation Certificates
|Tenor||Bid||Offer||Mid Point Index|
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
Forward Price Curve Based on Mid Point Index
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.
- 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.
- Method C employs Mercari's LGC Cost of Carry Model.
- Method C prices are not firm and are reference levels only.