Abaxx Commodity Futures Exchange and Clearinghouse partners with ION to offer post-trade clearing and risk solutions

11 July 2024

LONDON – 11 July 2024: ION, a global leader in trading and workflow automation software, high-value analytics and insights, and strategic consulting to financial institutions, central banks, governments, and corporates, announces that Abaxx Commodity Futures Exchange and Clearinghouse has chosen ION’s XTP technology to support its building of new markets for the ongoing energy transition. The Abaxx Exchange, which began trading in Singapore on 28 June, has partnered with ION to offer robust, scalable, secure post-trade clearing and risk solutions.

​The new Abaxx Exchange features five new centrally cleared, physically deliverable commodity benchmark futures contracts to help market participants execute their energy transition strategies through improved price discovery and enhanced risk management tools. Abaxx aims to establish physically deliverable benchmarks for global LNG and voluntary carbon markets, followed by battery metals solutions.

​XTP is essential for exchange clearing members using the ION technology as it allows them to source all trades via the Abaxx Clearinghouse API and perform account transfers, trade splits, and give-up/ take-up processes. Once trades are allocated to the end beneficiary account, XTP performs in real-time position valuations, margining and commission charge calculations. As part of the end-of-day process, XTP calculates the final settlement amounts, and produces all required reports.

​Dan McElduff, Abaxx Exchange President, Strategy & Development, says, “We are thrilled to collaborate with ION to provide our clients with comprehensive post-trade clearing and risk solutions. With ION’s XTP technology and our physically deliverable commodity futures contracts, market participants can benefit from enhanced price discovery and risk management tools. This partnership is crucial for supporting the energy transition and attracting investment for a low-carbon economy.”

Francesco Margini, Chief Product Officer for Cleared Derivates, ION Markets, says, “We are pleased to partner with Abaxx as they launch their new exchange and clearinghouse, especially as the development comes at a time when the derivatives market structure is evolving rapidly. It is important to bring the benefits of futures to a new market to support the ongoing energy transition. Deploying XTP technology to the LNG and Carbon markets provides robust and trusted post-trade solutions with real-time capabilities that allow clients to manage their risk effectively. We feel strongly about our role in supporting Abaxx to fulfill its derivatives ambitions in a secure and sustainable way.”

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About ION Group

ION Group provides mission-critical trading and workflow automation software, high-value analytics and insights, and strategic consulting to financial institutions, central banks, governments, and corporates. Our solutions and services simplify complex processes, boost efficiency, and enable better decision-making. We build long-term partnerships with our clients, helping transform their business for sustained success through continuous innovation. For more information, visit https://iongroup.com/.

About ION Markets

ION Markets provides transformative technology and solutions to financial institutions dealing in equities, fixed income, foreign exchange, cleared derivatives and secured funding. Our award-winning end-to-end solutions simplify clients’ operations by automating the full trade lifecycle, providing tools to manage risk, and maximizing access to liquidity, while giving real-time access to critical information required for timely operational decisions and execution on a global scale. For more information, visit https://iongroup.com/markets/.