Abaxx Exchange

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Abaxx Exchange
Headquarters Singapore
Key People Nancy Seah, Managing Director
Products Futures contracts in liquified natural gas (LNG)
LinkedIn Profile
Website https://www.abaxx.exchange/

Abaxx Exchange (AEX), headquartered in Singapore, was launched to provide centrally cleared, physically delivered futures contracts and derivatives in liquified natural gas (LNG), pending regulatory approval.[1] Toronto-based Abaxx Technologies Inc., the majority shareholder of the Abaxx Exchange, is designing financial tools to provide traditional risk management and enhanced ESG compliance for the exchange.[2]

Abaxx’s research and trading teams published a white paper on January 17, 2023, detailing the benefits of a global LNG benchmark with the option to complete a physical delivery transaction. Abaxx said the ability to be the “buyer or seller of last resort” allows market participants to more directly correlate and converge with their LNG cargoes on the waterway. The white paper is publicly available on the Abaxx.tech website in the Press Releases section [http:\\abaxx.com|abax whitepaper].

History[edit]

On January 20, 2023, Abaxx Exchange filed a notice of upcoming listing of futures contracts with the Monetary Authority of Singapore for regulatory review. The futures contracts are designed to meet the pricing and risk management needs of energy market participants trading liquefied natural gas (LNG).[3]

Abaxx plans to launch a set of three regional contracts including: Northwest Europe, North Asia Pacific and the United States Gulf of Mexico. Abaxx said the contract structure was determined after extensive consultations with energy market participants.

Products and Services[edit]

Abaxx Exchange is in the process of launching a physically delivered LNG contract. The Abaxx operations team will facilitate an efficient execution experience for members across the lifecycle of a trade. Abaxx Clearing will perform post-trade clearing, risk management and settlement services for the exchange.

Regulation[edit]

Abaxx Clearing is incorporated in Singapore and will be licensed and supervised by the Monetary Authority of Singapore (MAS), as an approved clearing house (approval in principle was received on August 25, 2021 from the MAS). Abaxx Clearing will comply with the statutory objectives set out in the Securities and Futures Act and its subsidiary legislation, including SF (Clearing Facilities) Regs and SF (Corporate Governance) Regs and MAS Notice on Financial Market Infrastructure Standards. [4]

Key People[edit]

References[edit]