THE DEUTSCHE BORSE group
is planning a foray into providing aninternet-based weather
derivatives, emissions trading and freight transportations
trading platform within the next year, high ranking officials
at the company told journalists in London today.
The new trading platform - entitled xlaunch - is already
being marketed to potential clients, xlaunch's Chief Executive
Officer Martin Reck said. He believed that the new platform
would fill a void in the fledgling emissions trading and
weather derivatives market, as well as provide a comprehensive
business services portfolio. "We have contacts in the
industry (interested) in weather derivatives and emissions
trading. The technology is ready, the next step is to bring
it into the market place this year," Reck said. He
was unable to specify when xlaunch would be operational.
"Weather derivatives are an emerging market. Although
products are being traded on stock exchanges, they are not
very liquid. We
are looking for ways to bring the market forward,"
Reck said. He added that xlaunch's commodity trading platform
would provide a single dealer setting to customers, which
would permit "dealers to select counterparties
that they wanted to trade with."
One of xlaunch's core
trading parameters is to provide a one-stop shopping service
to clients. Through a series of products tailored to the
financial and non-financial sector, customers could invest
in a number of other financial markets such as equities,
foreign exchange and telecommunications services. With regards
to emissions trading and weather derivatives, xlaunch is
targeting financial institutions, energy producers and participants
that consume energy.
"There are no membership fees. We would be the service
provider, manage the technology," xlaunch's Director,
Business Architect Bernd Mack said.
He added that xlaunch was looking to provide services beyond
providing indices. "We are looking to provide hub solutions.
The market tends to provide tailored solutions to the market,
we have a transaction-based model that can offer the backend
(technological) side of it." Recently,
Deutsche Borse appointed Toronto-based Basis100 Inc. as
xlaunch's technology provider.