FEX Derivatives

FEX Exchange Traded Derivatives Market

The FEX Futures Exchange serves the risk management and trading needs of customers around the globe, with particular emphasis on participants based in the Asia-Pacific region. The FEX Futures Exchange will provide and operate a wide range of energy and commodity based futures and options contracts.

The FEX Futures Exchange will provide innovative product development, relevant technology, together combined with a superior level of service that focuses on creating real opportunities for risk management and trading in the Asia-Pacific region.

Regulation

The Financial and Energy Exchange Limited (FEX) is seeking approval from the Minister for an Australian market license under s795B of the Corporations Act, 2001 (the Act) to open and operate the FEX Derivative market; an electronically traded futures and options market. FEX's clearing partner, an global independent clearing house has itself applied to the Minister under s824B(2) of the Act for an Australian clearing and settlement facility license (CS facility license) to enable it to clear and settle transactions entered into on the FEX market.

On 7 March 2011, ASIC issued a consultation paper, seeking views on the FEX's Australian market licence application. Additionally, on 12 May 2011, ASIC issued a consultation paper seeking views on the Market Integrity Rules for the FEX Futures Exchange.

Trading Technology

The FEX Futures Exchange uses proven NasdaqOMX trading engine technology www.nasdaqomx.com to provide its customers and members with enhanced capability to facilitate the most demanding and complex trading requirements. The FEX trading platform offers customers connectivity options that include bespoke applications and the applications of all major ISV suppliers via both FIX and native API options.

Products

The FEX Futures Exchange will provide and operate a wide range of energy and commodity based futures and options contracts focused primarily at servicing the Asia-Pacific region. Asian, US and European investors will have the opportunity to manage and trade risk that is more accurately aligned to the underlying energy and commodity raw materials that are produced, exported and consumed in the region.