Chem Connect Commodity Exchange

Abstract:

Chem Connect Commodity Exchange was established in 1994. At present, it has become one significant commodity exchange of the world which provides Over the Counter electronic transaction facility and also offers an internet based trading platform for commodity futures and commodity options trading of commodities.

Chem Connect Commodity Exchange carries out OTC(Over the Counter) electronic transactions for commodity trading of the different types of energy products. The commodities that are mainly traded in the Chem Connect Commodity Exchange are natural gas, refined fuels, intermediate fuels, petrochemical products and polymer products.

Evolution of Chem Connect Commodity Exchange

The Chem Connect Commodity Exchange was established in the year 1994. At that time, there were very few electronic trading platform for commodity futures and commodity options trading of energy commodities.

Chem Connect Commodity Exchange soon became a significant commodity exchange offering electronic trading platform. At present, it offers an internet based platform for trading of futures contracts and futures options of different midstream and downstream energy commodities. It has also become the largest OTC electronic transaction exchange of the world.

Participants of Chem Connect Commodity Exchange

In commodity trading transactions of this exchange innumerable producers and consumers participate from Europe, North America and Asia. Other than the producers and consumers, many transportation and logistic companies, financial institutions, banks and hedge funds participate in commodity trading of Chem Connect Commodity Exchange. It can be mentioned here, that, for participating in commodity trading through Chem Connect Commodity Exchange, any organization is required to be Eligible Commercial Entity according to the Commodities Exchange Act.

Types of Transactions offered by Chem Connect Commodity Exchange

Chem Connect Commodity Exchange offers different types of transaction facility in order to satisfy the diverse needs of commodity traders. First of all, there is a range of Over the Counter transaction which are physically settled. There are facilities of swaps, cleared swaps, spreads and forwards. The exchange also provides the facility of transacting through Fixed Price Contracts. In the Chem Connect Commodity Exchange, commodity traders also get the facility of commodity index trading, where the recognized indices are Argus, Platts, OPIS, CMAI and CDI.