KANSAS CITY, Mo., Dec. 16, 2008 (GLOBE NEWSWIRE) -- Agora-X, LLC today announced that The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) has completed its equity investment following launch of the new Agora-X electronic communications network for institutional trading in over-the-counter (OTC) commodity contracts. The transaction gives NASDAQ OMX a 20 percent equity interest in Agora-X.
"We are delighted with the deepening relationship between Agora-X and NASDAQ OMX, the global leader in exchanges and technology. We've worked with NASDAQ OMX to create the technology for a best-in-class electronic marketplace, and now that Agora-X is 'live' we are going to transform the way institutions trade OTC commodities," said Brent M. Weisenborn, Chief Executive Officer. "Trading is all about getting the best price, and the Agora-X platform brings offers and bids together to provide efficient negotiation, improved price visibility, and greater liquidity for OTC market participants."
On December 12, Agora-X launched an electronic communications network (ECN) designed to enable institutional traders to efficiently negotiate OTC transactions in agricultural swaps and swaptions, as well as swaps and options on ethanol. The platform provides a more liquid and transparent marketplace for price discovery and negotiation. Until now, OTC market participants have had to find counterparties and negotiate prices for each trade through time-consuming phone calls, instant messages or e-mails.
In January, Agora-X plans to roll out its exempt commercial market (ECM) to handle financially-settled option "look-alikes" in energy, metals and other non-agricultural commodities. The ECM will allow negotiation, execution and clearing of OTC trades in non-agricultural commodities.
As previously announced, Agora-X has filed a petition with the Commodity Futures Trading Commission (CFTC) seeking an exemption under Section 4(c) for the Agora-X ECN to provide clearing of trades in agricultural swaps and swaptions. Current CFTC rules allow clearing of OTC trades for other types of commodity contracts, but not agricultural swaps and swaptions, unless a marketplace obtains a specific exemption. In addition, Agora-X has submitted a petition to the Commission to amend CFTC Rule 35 to enable clearing industry-wide of OTC agricultural swaps and swaptions. If Part 35 is amended, the 4(c) exemption would not be necessary.
Provident Group, a New York-based boutique investment bank and alternative asset management firm is the exclusive financial advisor to Agora-X.
About Agora-X
Agora-X, LLC has developed an electronic communications network for OTC commodities contracts in collaboration with major institutional participants in the commodities market. Based in Kansas City, Agora-X was founded with seed money from FCStone Group, Inc. (Nasdaq:FCSX), a commodity risk management firm. Agora-X has worked with NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) to create a best-in-class marketplace. For more information please visit www.agora-x.com.
About The NASDAQ OMX Group
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with over 3,900 listed companies. NASDAQ OMX Group offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; NASDAQ OMX Nordic, including First North; NASDAQ OMX Baltic and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX Group technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX Group exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.
About FCStone Group, Inc.
FCStone Group, Inc., along with its affiliates, is an integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. The firm assists primarily middle market customers in optimizing their profit margins and mitigating exposure to commodity price risk. In addition to risk management consulting services, FCStone, LLC, operates one of the leading independent clearing and execution platforms for exchange-traded futures and options contracts. FCStone Group, Inc., serves more than 8,000 customers and in the 12 months ended August 31, 2008, executed 100.0 million derivative contracts in the exchange-traded and over-the-counter markets. The FCStone Group companies work in all the major commodity areas including agriculture, energy, renewable fuels, foods, forestry, cotton and textile, dairy and currency exchange. Headquartered in the Midwest, it has offices located throughout the world and is a clearing member of all major North American futures exchanges. FCStone Group, Inc., trades on the NASDAQ Global Select Market under the symbol "FCSX."
About Provident Group
Provident Group is a New York-based investment bank that focuses on structuring and placing transactions for middle market firms and emerging market based companies. For more information please visit www.provident-group.com.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about current and future products and offerings of FCStone, NASDAQ OMX and Agora-X. We caution that these statements are not guarantees of future performance or product developments. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the control of FCStone, NASDAQ OMX or Agora-X. These factors include, but are not limited to factors detailed in the annual reports on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission by FCStone and NASDAQ OMX. We undertake no obligation to release any revisions to any forward-looking statements.
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