Agora-X, today announced the start of trading in over-the-counter (OTC) corn and natural gas contracts, a milestone for the first electronic marketplace designed for OTC derivatives in energy, metals and agricultural commodities.
Agora-X is a best-in-class platform allowing institutions to negotiate OTC transactions in an efficient marketplace offering improved price visibility, liquidity and lower transaction costs.
"The crossing of trades in corn and natural gas, two major classes of commodity contracts, marks a step forward in rolling out Agora-X to participants in the OTC derivatives market," said Brent M. Weisenborn, Chief Executive Officer. "Our efficient platform makes a dramatic difference by enabling traders to obtain best prices in a more open, liquid and transparent electronic marketplace displaying bids and offers for derivative contracts, rather than negotiating transactions through time-consuming phone calls or instant messages."
Last week, Treasury Secretary Timothy Geithner proposed regulatory reforms to require increased transparency for OTC derivative transactions, including reporting, audit trails and centralized clearing. Mr. Geithner noted that electronic trading platforms for the OTC market facilitate regulatory oversight and reduce systemic risk and counterparty issues.