SYDNEY — 10 April 2013— FEX Global (FGL), a subsidiary of The Financial & Energy Exchange Group, today welcomed the announcement by the Minister for Financial Services and Superannuation and Minister for Employment and Workplace Relations, The Hon Bill Shorten MP, that it has been granted an Australian Market Licence for the operation of a derivatives market.
Commenting on the FGL licence approval, Thomas Price, Director and CEO of FEX Global said: “This is a significant milestone in the ongoing development and growth of Australia as a financial markets hub in Asia and additionally a recognition that competition and innovation are necessary input variables if the nation is to reignite the true historical engine of Australian economic growth and counterbalance the reliance on the resource extraction industries for economic relevance in Asia.” FGL is committed to developing an Australian domiciled market place that is focused on challenging the Northern Hemisphere financial service industries, including the exchange operators, who currently provide greater than 90% of financial services imported into Asia.
In granting the FGL Australian Market Licence FGL and the Financial & Energy Exchange recognise the work ASIC and the Government have undertaken to create a regulatory framework that enables the delivery of key economic initiatives as identified by various reports including the report of the Australian Financial Centre Forum: Australia as a financial centre: Building on our strengths (the "Johnson" Report), the report of the Australian Council of Financial Regulators on "OTC Derivative Market Reform Considerations”, the Australian governments Asian century White Paper report, and obligations arising from Australia’s commitment to the world economic reforms identified at the G20.
FGL is acutely aware that the mere presence of licensed financial market infrastructure alone is not enough to promote Australia as a financial hub and understands that there is much work to be done to win customers back to our region. It is no secret that exchange customers and participants all along the trade value chain including clearing, trading and IT are a demanding group and we recognise that often their very livelihood relies on an exchange structure designed to satisfy all stakeholders in a fair and efficient manner within the umbrella of the regulatory obligations administered via the relevant regulatory bodies.
FGL will establish itself in the Asian region providing an efficient and competitive offering with an emphasis on customer service designed to compete with financial services currently being imported from the Northern Hemisphere.
FEX Global, a subsidiary of the Financial & Energy Exchange Group, will provide and operate a 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.
FEX Group is an Australian unlisted public company which was established in 2006. The FEX Group offers globally competitive licensed marketplaces in exchange traded and OTC derivative markets with a particular focus on the development and listing of products in the commodity, energy and environmental asset classes. FEX Group markets seek to provide market 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.