FEX - Financial and Energy Exchange Group

FEX Environmental

Environmental Markets

FEX's product development plans include environmental products and securities. Utilising FEX's sophisticated financial market infrastructure and platforms, FEX is currently developing and operating markets for:

Both Mercari environmental and SIM VSE cleantech markets are currently operational.

FEX's environmental OTC marketed opened in November 2008 with an initial trade of Renewable Energy Certificates on the Mercari market.

A current focus for the FEX environmental markets team is the development of an end of day settlement price and forward curve for Australian Large-Scale Generation Certificates. This closing rates process was developed collaboratively with a cross-section of market users and has already gained substantial and growing traction in the market.

The LGC market closing rate concept emerged from client demand in the area where trading meets risk management. The demand was for a closing rate curve which would enable risk managers to allocate a higher level of confidence in the Large-Scale Generation Certificates forward price curve. A higher level of confidence would enable risk managers more confidence to allocate risk limits to traders. This is a meaningful way to increase market liquidity, especially in the forward price curve.

Mercari serves as a neutral and unbiased third party service provider. The electronic platform essentially guarantees minimum standards and certainties of price, volume, liquidity and credit. Investors and developers of large scale renewable projects such as wind and solar farms also understand the improved certainty an investment grade forward price curve can provide. The daily LGC closing rates can be seen at lgc.mercari.com.au.

For more information on the Mercari LGC market end of day close, please contact rates@mercari.com.au.