Abaxx Exchange has selected Eventus to provide the trade surveillance platform for the new marketplace and has chosen ION’s XTP technology to offer robust, scalable, secure post-trade clearing and risk solutions.
Open for trading as of June 28, 2024, and based in Singapore, Abaxx offers global futures on energy, metals and other energy transition focused commodities, beginning with liquified natural gas (LNG) and carbon, soon to be followed by solutions for battery metals.
Abaxx deploys Validus platform by Eventus
Abaxx has deployed the Validus platform as the foundation of its market surveillance program.
Dan McElduff, Abaxx Exchange President, Strategy and Development, said: “As the first new regulated exchange and clearinghouse focused on physical commodities and built from the ground up in over a decade, Abaxx requires a market surveillance tool that is robust, customizable and scalable, yet quick and easy to implement. Eventus’ Validus platform offers the flexibility we were looking for, supported by an experienced and responsive team guiding Abaxx in the deployment of the solution with ease. The user-centric features of Validus provide Abaxx with strong workflow automation, and better focus and control over our surveillance responsibilities of the market.”
Eventus CEO Travis Schwab said: “We are incredibly honored that Abaxx has entrusted our team to provide the backbone of its critical trade surveillance function through the Validus platform. The innovative commodity exchange has generated significant interest in the industry. Market integrity is a high priority for the exchange, and Abaxx will benefit from our expertise and high-performance surveillance technology used by marketplaces and leading financial institutions across the globe.”
Abaxx selects ION’s XTP technology for post-trade clearing and risk solutions
Abaxx Commodity Futures Exchange and Clearinghouse has deployed ION’s XTP technology to support its building of new markets for the ongoing energy transition.
The new Abaxx Exchange features five new centrally cleared, physically deliverable commodity benchmark futures contracts to help market participants execute their energy transition strategies through improved price discovery and enhanced risk management tools. Abaxx aims to establish physically deliverable benchmarks for global LNG and voluntary carbon markets, followed by battery metals solutions.
XTP is essential for exchange clearing members using the ION technology as it allows them to source all trades via the Abaxx Clearinghouse API and perform account transfers, trade splits, and give-up/ take-up processes. Once trades are allocated to the end beneficiary account, XTP performs in real-time position valuations, margining and commission charge calculations. As part of the end-of-day process, XTP calculates the final settlement amounts, and produces all required reports.
Dan McElduff, Abaxx Exchange President, Strategy & Development, said: “We are thrilled to collaborate with ION to provide our clients with comprehensive post-trade clearing and risk solutions. With ION’s XTP technology and our physically deliverable commodity futures contracts, market participants can benefit from enhanced price discovery and risk management tools. This partnership is crucial for supporting the energy transition and attracting investment for a low-carbon economy.”
Francesco Margini, Chief Product Officer for Cleared Derivates, ION Markets, commented: “We are pleased to partner with Abaxx as they launch their new exchange and clearinghouse, especially as the development comes at a time when the derivatives market structure is evolving rapidly. It is important to bring the benefits of futures to a new market to support the ongoing energy transition. Deploying XTP technology to the LNG and Carbon markets provides robust and trusted post-trade solutions with real-time capabilities that allow clients to manage their risk effectively. We feel strongly about our role in supporting Abaxx to fulfill its derivatives ambitions in a secure and sustainable way.”
The Singapore-based commodity futures exchange and clearinghouse is now available through the TT platform. Trading Technologies has established connectivity to the newly launched exchange that lists energy and carbon derivatives contracts. The first trade was executed through the TT platform by StoneX Financial.
