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WDX Organisation Ltd., the company behind the Wocu (World Currency Unit) is delighted to announce the signing of an extended contract with Navitas Resources, the Singapore-based specialist energy and climate commodity trade facilitator. Having signed the initial agreement earlier this year the two companies have now finalised the details of the licence and transaction fee structures to launch Wocu priced commodity trading. The Wocu is expected to be used to price physical commodity contracts to be listed on Navitas’ NR-X Physical Commodity trading and procurement platform (www.nr-x.com).
Navitas have elected to use Bunker Oil (Marine Fuel) as the first physical commodity in the world to be priced in Wocus. As Bunker Oil drives the majority of sea-going trade, it is a commodity of primary importance. Trading Bunker Oil in Wocus rather than dollars is anticipated to allow companies to achieve maximum benefit from the Wocu’s particular advantages, namely reduced exchange rate volatility and an effective partial hedging mechanism, reducing spot and forward inconsistencies in Bunker Oil pricing.
Tom James of Navitas commented, “We are very excited to have finalised the terms of the agreement with WDX regarding the Wocu and look forward to launching Wocu pricing for a range of physical commodities on our NR-X platform. We have no doubt this will give our platform a leading edge over those who do not offer the advantages of pricing in the Wocu, especially given the large US$ currency concentration risk most companies in the commodity and energy sectors currently have to manage.”
Michael King, CEO of WDX Organisation, said, “We believe this early adoption of the Wocu basket is a key signal from the markets. The agreement reflects the requirement of market participants for currency neutrality in some, or all, of their activities. Utilising the Wocu in commodity trading will create certainty in forward transactions, which in turn will drive down costs. A single currency arrangement would be hard pressed to reduce volatility in this manner.”
Agreement with an exchange to quote and transact Wocu and Wocu-priced products is the next important step toward the global adoption of the Wocu; Navitas and WDX anticipate this to be progressed later this year.
