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The European Energy Exchange (EEX), in cooperation with Cleartrade Exchange (CLTX) will launch an extension to its Trade Registration services for fertiliser contracts on 6 January 2015.
The product offering includes six derivatives contracts for fertilisers based on Urea, Diammonium Phospate (DAP) and Urea Ammonium Nitrate (UAN) for different delivery points in the United States, Europe and North Africa. All products are cash-settled agreements settled against market indexes, published by Argus Media Limited, Ferte- con Limited and CRU International Limited in “The Fertilizer Index*” report. Due to the small contract sizes of 25 tons compared to the standard size of 500 tons, this move promotes increased flexibility for EEX customers.
“Additionally listing CLTX fertiliser contracts at EEX will enable access to these prod- ucts for an even wider network of partners”, says Richard Baker, Chief Executive Offic- er of CLTX. “At the same time, it will be possible to clear transactions at a further clear- ing house, European Commodity Clearing (ECC).”
"The launch of fertiliser contracts constitutes the entry of EEX into the agricultural de- rivatives segment, which we will complement with further products in May 2015", says Peter Reitz, Chief Executive Officer of EEX. “Furthermore, EEX will launch its offering for freight futures in January which provides significant benefits for participants who are also active on the fertiliser markets.”
With the clearing of freight and fertiliser products on one platform, market participants can hedge price fluctuations in the physical fertiliser markets and eliminate counterpar- ty credit risk while at the same time, optimising transport costs for fertilisers. Further- more, by holding all positions at the same clearing house, participants benefit from netting effects, since ECC provides cross-margining across various markets and ex- changes, including CEGH Gas Exchange of Vienna Stock Exchange, EEX, EPEX SPOT, HUPX, Powernext and PXE.
The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal and guarantees of origin are traded. Through its majority shareholding in Cleartrade Ex- change (CLTX), EEX additionally offers the markets for freight, iron ore, fuel oil and fer- tilisers. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing (ECC). EEX is a member of Eurex Group.
Cleartrade Exchange (CLTX) is a regulated futures exchange for the global commodity derivatives marketplace. CLTX offers an electronic order book with a suite of over 40 different derivative contracts covering Energy, Freight, Metal and Agriculture. CLTX is a Recognised Market Operator (RMO) regulated by the Monetary Authority of Singa- pore (MAS). CLTX is incorporated in Singapore with offices in London.
Cleartrade Exchange, an EEX company, part of Deutsche Borse Group
ARGUS, the ARGUS Logo, FERTECON, the FERTECON Logo, CRU, the CRU Logo, are trade marks of Argus Media Limited, Fertecon Limited, and CRU International Limited, respectively, and are used under licence. All trade mark rights, copyrights and database rights in The Fertilizer Index report and The Fert i- lizer Index belong exclusively to Argus Media Limited, Fertecon Limited, and CRU International Limited, and are used under licence. EEX and ECC are solely responsible for the EEX Urea (Granular) fob NOLA Future, EEX Urea (Granular) fob Egypt Future, EEX Urea (Prilled) fob Yuzhnyy Future, EEX DAP fob NO- LA Future, EEX DAP fob Tampa Future and EEX UAN fob NOLA Future. Neither Argus, Fertecon or CRU takes any position on the purchase or sale of these futures contracts and excludes all liability in relation thereto.
