Agora-X enables institutional market participants to negotiate OTC transactions in commodity and derivative contracts, including through bilateral negotiation. As previously announced, Agora-X offers automatic clearing through CME ClearPort on certain OTC derivatives along with an electronic audit trail on all transactions.
As a result of the transaction, Agora-X will become a part of Nasdaq OMX commodities business and Brent Weisenborn, CEO of Agora-X, will report to Geir Reigstad, head of Nasdaq OMX commodities.
Additionally, the Nasdaq OMX commodities business provides access to the global power derivatives exchange and Europe’s carbon markets, together with Nord Pool. FCStone Group, a commodity risk management firm, previously held the majority ownership position in Agora-X and will continue to hold a minority stake.
Hans-Ole Jochumsen, executive vice president of transaction services Nordics at Nasdaq OMX, said: “As the global leader in providing exchange technology and trading efficiencies, we believe that by expanding our partnership and investment in Agora-X, Nasdaq OMX can bring OTC commodity traders’ market efficiencies, cost savings, transparency and liquidity, as we have brought these advantages to the equity markets for years. This investment is also a strategic expansion within our broader global commodities business.”
Mr Weisenborn said: “We are very excited with the expanded relationship between Agora-X and Nasdaq OMX. We’ve worked with Nasdaq OMX to create the technology for a best-in-class electronic marketplace, and now with their majority interest, it allows for us to take advantage of immense synergies and access to all of the Nasdaq OMX resources.
“The Agora-X platform makes a dramatic difference in price discovery by enabling traders to obtain best prices in a more open, liquid and transparent electronic marketplace. Displaying bids and offers for derivative contracts on Agora-X, rather than negotiating transactions through time-consuming phone calls or instant messages, saves traders time and money.”
