Abaxx Technologies Launches Commodity Futures Exchange, Clearinghouse
Abaxx Technologies Inc. (CBOE: ABXX), a financial software and market infrastructure company, has announced the launch of its commodity futures exchange and clearinghouse, with trading commencing in liquefied natural gas (LNG) and carbon futures contracts late last week.
The new exchange, based in Singapore, saw its first day of trading conclude with the front month price for Gulf of Mexico October 2024 LNG settling at $9.09 per million British thermal units (mmbtu).
Josh Crumb, CEO of Abaxx, reflected on the journey to this launch, emphasizing the collaborative effort involved.
“Today’s first trades are the culmination of years of dedicated efforts by our team, working groups, and partners to build smarter markets,” Crumb said. “We’ve collaborated with industry leaders and technology partners to create innovative solutions that meet the evolving needs of the commodities marketplace.”
Abaxx’s initiative comes at a crucial time as the world transitions to a low-carbon economy. The company aims to provide the price discovery and risk management tools necessary for market participants to manage their investments effectively. This includes plans to introduce futures contracts for battery metals like nickel sulphate soon.
Nancy Seah, CEO of Abaxx Exchange, highlighted Singapore’s pivotal role in this venture. “Singapore is the most vital global commodities trading hub in Asia, and with the opening of Abaxx Exchange and Clearinghouse, we are excited to support this leadership in the futures and derivatives markets,” Seah stated.
“Our team, comprised of industry veterans from Goldman Sachs, NYMEX, CME, and SGX, is committed to developing the next generation of commodities futures contracts benchmarks for the energy transition,” she added.
Abaxx has established full clearing and execution services through its two clearing members, StoneX and KGI Securities. Additionally, execution and broking services are available from brokers including Marex, Eagle Commodities, Evolution Markets, Salamander Broking, SSY, TP ICAP, and Venture Commodities Partners. Introducing broker services are provided by Sweet Futures.
The technological infrastructure is powered by partnerships with leading providers including Exberry, Baymarkets, and Eventus. These collaborations ensure scalable, secure trading and clearing solutions. Furthermore, market participants are supported by Independent Software Vendors (ISVs) such as Fidelity Information Services Ltd. (FIS®), ION, Trading Technologies (TT), and CQG.
Industry leaders have expressed their support and excitement for this new development. Ceo.ca founder Tommy Humphreys praised the Abaxx team for their perseverance over the past 6.5 years. “Witnessing Josh and his team over these challenging years has been inspiring. Today’s go-live is just the beginning of something great,” he posted.
Abaxx’s initial suite of LNG and carbon futures contracts is now open for trading 14 hours a day, Monday through Friday. The company plans to expand its product offerings shortly, signaling ongoing growth and innovation in the commodity futures market.
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