Commodities Management Exchange (CMXchange) and OPT4 Derivatives have announced the launch of CMXflexclear, an electronic marketplace for the trading and matching of OTC derivative transactions.
CMXflexclear uses OPT4 trading technology to allow exchange members to trade commodity derivative transactions across a secure Internet platform. Approved participants can privately or anonymously negotiate over-the-counter swaps with agreed terms and parameters. Upon completion, these financially settled trades will be cleared, processed and guaranteed by the Board of Trade Clearing Corporation.
CMXflexclear was created to provide off set and netting benefits for participants in the OTC markets, as well as reduce their bilateral counterpart risk, and increasing overall market liquidity and trade turnover, says the exchange.
The new marketplace will be rolled out in the 2Q of 2002 and will initially focus on metal related transactions. It is anticipated that other commodities, as well as more derivatives products, such as non-vanilla swaps and options, will be added to CMXflexclear in the future.
According to Tony Brown, chairman and CEO of CMXchange, there will be major commercial accounts participating in CMXflexclear for the April block trading and the summer online launch.