FEX is a market structure design and market operations business group. The business aim of FEX Group is to build and operate regulated and globally competitive licensed marketplaces for both cash and derivative products, with a particular focus on the development and listing of tradeable products within the commodity, energy and environmental asset classes. Markets within the FEX Group seek to provide participants and users in the Asia-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) (add web link) as well as through the Reserve Bank of Australia's (add web link) oversight of financial system stability. In addition ASIC also supervises FEX Group as an unlisted public company.
FEX Global has been granted an Australian Market License by the Minister under s795B of the Corporations Act (the Act), enabling it to operate markets in energy, commodity and environmental derivative products.
FEX Global's clearinghouse, LCH.Clearnet (add link) has also been granted an Australian Clearing and Settlement Facility License by the Minister under s824B of the Act to enable it to clear FEX Global transactions.
FEX Group owns a 100% interest in the licensed over the counter (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 products. Mercari uses the Mercari eSEF technology to operate the marketplace and is supervised by ASIC.
For further information on Mercari and the products on Mercari market, please visit Mercari.
FEX is a 50% owner of SIM Venture Securities Exchange (SIM VSE). SIM VSE operates a securities market specialising in driving investment in the clean technology, renewable energy, biological science and related technology and service industries.
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 the exchange's rules and products visit SIM VSE.
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.
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.