The dawn of Australia’s new futures exchange, FEX Global

Rick Steves

FEX Global has partnered with CME Clearing to act as the counterparty in the trades. The firm’s reputation within the industry will certainly back FEX Global’s first steps and ensure its Asia-Pacific customers are being offered world standard clearing services.

Australia is about to have a new exchange catering to the APAC region. FEX Global will offer centrally cleared futures and options for the energy, environmental, and commodity product classes.

To be launched on March 26, 2021, the futures exchange aims to optimize hedging and risk management for market participants by providing futures and options for both commodity and energy markets, as well as emerging renewable energy and environmental markets.

“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”, said Brian Price, FEX Global Executive Chairman. “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”, Mr. Price added.

FEX Global has partnered with CME Clearing to act as the counterparty in the trades. CME Clearing’s reputation within the industry will certainly back FEX Global’s first steps and ensure its Asia-Pacific customers are being offered world standard clearing services.

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.”

The futures exchange will open with futures and options in Australian Power, Australian dollar iron ore, Japan, and ESPO crude. In Q3 2021, FEX Global will add gas, solar, battery storage, environmental contracts, LGC, ACCU subject to the relevant regulatory approvals.

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