LCH.Clearnet and Australia’s Financial and Energy Exchange Group (FEX), have agreed initial terms for LCH.Clearnet to provide clearing for the FEX Exchange Traded Derivatives Market, subject to regulatory approval.
LCH.Clearnet will clear energy, commodity and environmental derivatives listed on FEX. Participants will benefit from LCH.Clearnet’s global operational capabilities, providing a robust and reliable service during the Asia-Pacific trading day.
FEX is a market infrastructure and services group operating electronic markets for exchange-traded-derivatives, over-the-counter products and Clean-Tech equities. FEX is focused on facilitating and providing access to the rapidly developing and expanding Asian energy and commodity markets, linking local growth with global demand.
Roger Liddell (pictured), CEO, LCH.Clearnet says: “Our global clearing capabilities and unrivalled expertise in clearing exchange traded contracts will support the growth of the FEX Exchange, which has the potential to play a key role in the continuing growth of commodity derivatives markets in the Asia-Pacific region. We are delighted to be working with FEX to bring efficiency and security to commodity and energy focused derivative users in the region.”
Thomas Price, CEO, FEX Derivatives, says: “At FEX the security, stability and efficiency of clearing was not only of operational importance, but essential to the utmost integrity of our exchange traded market. LCH.Clearnet’s extensive global capabilities and experience provide FEX with a clearing service that extensively provides for all our requirements and more.”
LCH.Clearnet has a long history of clearing commodities and energy trades, providing services for the London Metal Exchange and NYSE Liffe and the North American electronic commodities exchange, Nodal exchange. Dedicated to providing innovative clearing solutions to new markets, LCH.Clearnet also clears a range of OTC commodities including, FFAs, Steel, Iron Ore, Containers, Fertilizer, Emissions, Coal and Gold.
A consultation paper summarising the details of the application by FEX for an Australian market license was published by the Australian Securities and Investments Commission (ASIC) on March 7 2011.