Agora-X, LLC today announced the launch of an exempt commercial market (ECM) to enable efficient negotiation, execution and clearing of over the counter (OTC) trades in exempt commodities such as energy and metals using the Agora-X electronic platform.
Clearing will be provided through Chicago Mercantile Exchange Inc. The Agora-X ECM provides world-class technology for institutional participants to obtain best prices, efficient execution and clearing of trades in exempt commodities.
``Agora-X offers a more liquid and transparent OTC marketplace, including clearing of trades for 'look-alike' contracts in energy, metals and certain indices. Clearing is an important component for reducing counterparty risk in the current financial climate,'' said Brent M. Weisenborn, Chief Executive Officer. ``The efficiency, speed and price visibility provided by the Agora-X electronic platform will make a dramatic difference for OTC market participants.''
Agora-X submitted a notification of operation as an exempt commercial market to the Commodity Futures Trading Corporation. No approval is required for the ECM to begin operating and enable eligible market participants to negotiate, execute and clear trades.
As previously announced, Agora-X also has launched an electronic communications network (ECN) for negotiation of OTC contracts in agricultural and exempt commodities. Exempt commodities traded on the ECN also can be cleared through the CME. In addition, in the near future Agora-X will also list for negotiation and trading various financial contracts as well as contracts such as forwards, spots and options on various physical commodities.
Separately Agora-X today announced an agreement with CQG to offer the CQG Integrated Client ``front end'' to traders using the Agora-X electronic platform to negotiate over the counter (OTC) trades in commodity and derivative contracts.
The CQG software provides a versatile gateway on the trader's desk to rapidly track prices, place orders (including algorithmic strategies) and execute trades in the Agora-X marketplace. In addition, the CQG interface delivers accurate global market data and analytical tools for the trader.
``We are pleased to provide the CQG front-end platform to market participants who don't use their own proprietary software. Agora-X is all about providing transparency, liquidity and best-price execution to the OTC market through our electronic marketplace. CQG's interface enables traders to execute a strategy quickly and accurately, supported by ease of use and customizable on-screen visuals,'' said Brent M. Weisenborn, Chief Executive Officer of Agora-X.
Agora-X provides world-class technology for institutional market participants to obtain best prices, efficient execution and clearing of trades in exempt commodities such as energy and metals - and negotiation of OTC contracts in agricultural commodities. Developed in collaboration with major market participants, Agora-X offers OTC traders unparalleled efficiency, speed and price visibility.