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OMX, a leading expert in the exchange industry, has signed an agreement with Agora-X, a new US-based marketplace for over-the-counter (OTC) commodity contracts. According to the agreement, OMX will provide a complete hardware, software and operations solution to support Agora-X's new ECN platform. The new platform is scheduled for launch in mid-2008.
Agora-X is a Delaware limited liability company based in Kansas City, MO.Founded by FCStone Group, Inc., a global leader in commodity risk management, the company was formed to develop an electronic communications network (ECN) for OTC commodity contracts designed to help eligible institutional participants achieve strategic advantage in the rapidly growing OTC commodities market. While designed for a wide range of contract types, the ECN will initially target OTC option “look-alikes” in specific energy and agricultural commodities, as well as all commodity swaps.
“The growth of the overall commodities and commodities derivatives markets in combination with the increased role of financial institutions in these markets underscore the growing need to provide efficient intermediation of transactions for institutional players in these markets,” said Brent M. Weisenborn, CEO ofAgora-X. “Currently no platform exists that encompasses the scope of Agora-X's projected range of business activity. Agora-X's compelling business model and best-of-breed technology, supplied by OMX, will create that platform and provide the liquidity necessary to fully expand this market segment. ”
OMX will provide Agora-X with a complete technology solution including license, customization, implementation, hosting and ongoing monitoring, maintenance and support. The platform is highly scalable and has a proven history of adaptability which will enable Agora-X to easily adapt to regulatory changes and add new commodity types. The platform is built with an open architecture API (Application Programming Interface) which provides the flexibility to accommodate multiple front end solutions.
“We are delighted that Agora-X has chosen OMX as its technology partner to launch this exciting new marketplace for OTC commodity contracts,” said Markus Gerdien, President of Market Technology at OMX. “This appointment reinforces our position as the world's leading provider of exchange technology solutions, independently of asset class, and acknowledges both our financial industry expertise and deep technology resources. We look forward to working closely with Agora-X to help them build and launch this new marketplace.”
About OMX
OMX is a leading expert in the exchange industry. The OMX NordicExchange comprises over 800 companies including its alternative market, FirstNorth. OMX provides technology to over 60 exchanges, clearing organizations and central securities depositories in over 50 countries. The Nordic Exchange is not a legal entity but describes the combined offering from OMX exchanges inHelsinki, Copenhagen, Stockholm, Iceland, Tallinn Riga and Vilnius. OMX is aNordic Large Cap company in the Financials sector on the OMX Nordic Exchange.For more information, please visit www.omxgroup.com.
About Agora-X
Agora-X, LLC is a developmental stage company that is currently wholly owned by FCStone Group, Inc. It plans to develop an institutional ECN for OTC commodities contracts in collaboration with major institutional commodities market participants. The Agora-X platform is designed to enable institutional participants to anonymously obtain best prices in a more liquid/transparent marketplace. By efficiently monetizing/internalizing their internal order flow in this market segment, institutional players should achieve a strategic advantage. The Agora-X ECN is scheduled to launch in mid-2008. For more information please visit www.agora-x.com.
About FCStone Group, Inc.
FCStone Group, Inc., along with its affiliates, is an integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. The firm assists primarily middle market customers in optimizing their profit margins and mitigating exposure to commodity price risk. In addition, FCStone, LLC operates one of the leading independent clearing and execution platforms for exchange-traded futures and options contracts. FCStone Group, Inc. serves more than 7,500 customers. In the 12 months ending August 31, 2007, FCStone executed 61.7 million derivative contracts in the exchange-traded and OTC markets. The FCStone Group companies work in all major commodity areas including agriculture, energy, renewable fuels, foods, forestry, and currency exchange. Headquartered in the Midwest, it has offices located throughout the world and is a clearing member of all major North American Futures exchanges. FCStone Group, Inc. trades on theNASDAQ Global Select Market under the symbol FCSX.
