About The FEX Group

FEX Group is an Australian unlisted public company which was established in 2006.

The business aim of the FEX Group is to offer globally competitive licensed marketplaces for both derivative and equity products with a particular focus on the development and listing of tradeable products within the commodity, energy and environmental asset classes. FEX Group markets seek to provide market participants and users in the Asian-Pacific region greater product relevance to enhance both the management of risk and the facilitation of investment in the region.

Confidence in the licensed markets owned directly or indirectly by FEX Group is reinforced by the market supervision and regulatory role undertaken by the Australian Securities and Investments Commission (ASIC) as well as through the Reserve Bank of Australia's oversight of financial system stability. In addition ASIC also supervises FEX Group as an unlisted public company.

Markets

Mercari OTC Swap Execution Facility

The FEX Group owns a 100% interest in the licensed OTC Swap Execution facility known as Mercari Direct.

Mercari was established in 2005 and since January 2011 has been licensed to offer OTC markets in commodity, energy, interest rate, foreign currency and environmental product. Mercari uses the Mercari eSEF technology to operate the market place and is supervised by ASIC.

For further information on Mercari and the products on Mercari market, please visit www.mercari.com.au

SIM Venture Securities Exchange (SIM VSE)

FEX is a 50% owner of SIM Venture Securities Exchange (SIM VSE). SIM VSE operates a securities market specializing in listings for 'cleantech' companies.

The SIM Venture Securities Exchange is a stock exchange licensed by the Australian government and regulated by the Australian Securities and Investment Commission (ASIC). SIM VSE provides a fully electronic market platform with straight through settlement via the CHESS registration system.

SIM VSE is Asia-Pacific's oldest stock exchange having originally been established as the Sandhurst Stock Exchange in 1862; twelve years before the 1874 origins of the Bombay Stock Exchange.

For further information on each of the exchange's rules and products visit SIM VSE.

FEX Derivatives

At present, there are only two domestic Australian Market Licenses (AML) issued to operate retail and wholesale exchange-traded derivatives markets in Australia. Both of these licenses are controlled by the ASX Group.

Financial and Energy Exchange Limited (FEX) is currently seeking approval from the Minister for an Australian Market License under s795B of the Corporations Act 2001 (Corporations Act) to open and operate the FEX Derivatives Market. The FEX Derivatives Market will be an electronically traded futures and options market. For the purpose of its clearing and settlement arrangements, FEX has contracted the leading independent global clearing house LCH.Clearnet to provide clearing services for the FEX market.

This independent clearing house has itself applied to the Minister, under s824B(2) of the Corporations Act for an Australian clearing and settlement facility License (CSFL) to enable it to clear and settle transactions entered into on the FEX market.

Other Ventures and Investment

The FEX Group has additional investments in other relevant licensed marketplaces and businesses. This includes a 35% holding in Envex, an environmental product and market development company.

Shareholders

The FEX Group ownership is comprised of a consortium of energy and financial market participants, traders and investors. Shareholders include major mainland Chinese energy and investment groups, NasdaqOMX, AMB Holdings of Western Australia and the private equity group Iron Mountain.