Commodity Exchange

The Global Electronic Marketplace for Energy, Chemicals, Plastics and Industrial Materials

HMX operates an over-the-counter (OTC) electronic transaction exchange for downstream and midstream energy products and industrial raw materials such as natural gas liquids, refined and intermediate fuels, petrochemicals, commodity plastics and steel. The technology platform is an internet-based platform with a functionality designed for and with the input of industry participants. Contracts cover the major geographic trading hubs in North America, Europe and Asia and include a wide range of contract structures and terms.

Exchange Operating Methodology & Business Rules

Posted bids and offers on the platform are transmitted over the internet through state of the art encryption technology in real time. All bids and offers are completely anonymous, however, all bids and offers are fully transparent to all participants in the market. Counterparties are revealed to one another only upon satisfactory negotiation or acceptance of transaction terms. Contracts are offered as bilateral transactions with a built in credit management matrix individually and securely managed by each participant company. The system security will not allow a participant company to transact with a counterparty for which it does not have pre-existing matching credit terms. Bilateral transactions typically settle either through physical delivery at the appropriate delivery location agreed or financially in cash based on a published index agreed.

Participation

Participant companies include producers, consumers, distributors, traders, transportation and logistics companies and financial institutions within each product class. Participant companies must be qualified investors or commercial entities and must execute the standard HMX User Agreement.