KANSAS CITY, Mo., May 14, 2009 (GLOBE NEWSWIRE) -- Agora-X, LLC today announced support in principle for the Obama Administration's legislative proposal to provide greater transparency in trading of over-the-counter (OTC) derivatives. In a letter Wednesday to Congressional leaders, Treasury Secretary Timothy Geithner proposed requiring derivatives market participants either to use regulated exchanges or to trade OTC on electronic marketplaces. Technology can facilitate timely reporting, dissemination of price and trade data, and audit trails for use by the Commodity Futures Trading Commission, Geithner said. The administration proposal also would require centralized clearing of OTC transactions in standardized derivatives.
Agora-X offers an electronic marketplace that enables institutions to negotiate OTC transactions in derivative contracts for energy, metals and agricultural commodities. The Agora-X platform provides transparency of price discovery and reporting, replacing the less transparent practice of negotiating OTC trades one-on-one by phone or instant messages. In addition, Agora-X offers centralized electronic clearing of trades through CME ClearPort(r).
"We testified before Congress early this year about the need to bring the Commodity Exchange Act into the 21st Century. Modern OTC markets with electronic price discovery and clearing will benefit the public and reduce systemic risk and counterparty issues," said Brent M. Weisenborn, Chief Executive Officer of Agora-X. "Secretary Geithner is on track in advocating greater transparency, timely reporting and audit trails through electronic marketplaces. Traders also will benefit from more efficient, liquid and open negotiation -- plus lower transaction costs. The Agora-X platform offers all of these advantages."
The Treasury Department news release on regulatory reform proposals for OTC derivatives is available at http://www.treasury.gov/press/releases/tg129.htm. Mr. Geithner's letter to leaders in Congress also is online, at http://www.financialstability.gov/docs/OTCletter.pdf.
Additional information on the Agora-X platform and positions on regulatory reform is posted at www.agora-x.com.
About Agora-X
Agora-X, LLC has developed an electronic communications network for OTC 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 comprehensive OTC marketplace. In 2008, NASDAQ OMX became a developmental investor in Agora-X. For more information please visit www.agora-x.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.
If interested in being a participant, contact: Chris Halford, Agora-X 816-412-3002 Kevin O'Brien, Agora-X 212-471-3666 Media contact: Richard M. Johnson, Agora-X 913-649-8885