The NASDAQ OMX Group strengthens business relationships with Agora-X, LLC. To date NASDAQ has 20% equity interest in Agora-X, launching electronic communications network for trading in over-the-counter (OTC) commodity contracts.
NASDAQ has successfully completed its equity investment following launch of the new Agora-X electronic platform. New electronic communications network (ECN) provides a more liquid and transparent marketplace for price discovery and negotiation. Its designed to enable institutional traders to efficiently negotiate OTC transactions in agricultural swaps and swaptions, as well as swaps and options on ethanol.
In January, Agora-X plans to roll out its exempt commercial market (ECM) to handle financially-settled option “look-alikes” in energy, metals and other
non-agricultural commodities. The ECM will allow negotiation, execution and clearing of OTC trades in non-agricultural commodities.
Also Agora-X has submitted a petition to the Commodity Futures Trading Commission (CFTC) to amend CFTC Rule 35 to enable clearing industry-wide of OTC agricultural swaps and swaptions. If Part 35 is amended, the 4(c) exemption would not be necessary. Because Section 4(c) allows clearing of OTC trades for other types of commodity contracts, but not agricultural swaps and swaptions.
We’ve worked with NASDAQ OMX to create the technology for a best-in-class electronic marketplace, and now that Agora-X is ‘live’ we are going to transform the way institutions trade OTC commodities,” says Brent M. Weisenborn, chief executive officer. “Trading is all about getting the best price, and the Agora-X platform brings offers and bids together to provide efficient negotiation, improved price visibility, and greater liquidity for OTC market participants.”
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