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Deutsche Börse Market Data + Services and NOREXECO ASA today announced a cooperation in which NOREXECO has licensed the M7 trading technology for a new regulated exchange for the trading of derivatives on products from the forestry and paper industry. NOREXECO will become a renewable commodities exchange based in Norway.
As part of Deutsche Börse’s “7 Market Technology” global IT architecture, M7 is the leading trading system for commodity markets. It provides a flexible and fully scalable system that brings together buyers and sellers in one electronic marketplace.
“M7 is our leading global IT offering designed for the needs of market participants. We believe this best-in-class technology, and our expertise in operating exchanges for various asset classes, will strengthen NOREXECO’s efforts in building a regulated market for renewables,” said Hauke Stars, Executive Board Member responsible for the Information Technology and Market Data + Services division of Deutsche Börse.
“Norway and respectively the Nordic countries are primary producers and exporters of forestry products. With support from the industry, we want to establish an exchange platform for trading on renewables. Our aim is to develop efficient, liquid markets and transparent reference prices thus supporting the industry in procurement and risk management,” explained Stein Ole Larsen, CEO of NOREXECO. “The support and solutions from Deutsche Börse will enable us to serve our customers with market leading technology. Through this strategic partnership, we will offer a well reputed, robust and proven exchange platform with state-of-the-art connectivity and a flexible front end solution.”
Under the cooperation, Deutsche Börse will host and operate the M7 platform on its servers and provide technical services while NOREXECO will organize and maintain the market operations of the renewable commodities exchange. Trading participants will be able to access the platform via the frontend ComTrader.
NOREXECO will offer a fully regulated environment for trading derivatives on renewables by the end of 2014. The exchange will provide equal conditions for all participants and facilitates fully transparent price information. NOREXECO will offer an efficient trading platform that enables all NOREXECO members to administrate and execute trades in financial contracts on renewables and optimizing market exposure. Trading will be subject to supervision by the Norwegian Financial Supervisory Authority, Finanstilsynet.
The 7 Market Technology series currently comprises T7 derivatives trading infrastructure, C7 clearing system, N7 network solution and M7 multi-asset class trading service. Like T7, M7 offers users state-of-the-art technology, high speed and reliable connectivity and availability, as well as superior performance and a flexible frontend. Its versatile design allows the creation of applications and functionalities that are unique to a particular market structure or client base. Because M7 is hosted on Deutsche Börse’s servers, clients can benefit from using the system without investing in additional hardware or software, making it a truly cost-efficient option.