- 1 - Derivatives – The Next Big Thing for B2B? Shoomon Perry, March 2001 © 2001 Sixhills Consulting Ltd & Author Derivatives – The Next Big Thing for B2B? Several vertical B2B exchanges have announced initiatives to offer non-financial derivative products to their customers. This article argues that verticals are natural partners for existing derivative exchanges, and that they are helping to create a demand for hedging instruments in sectors that do not currently have derivatives. What is Going On? Initiatives announced to date cover industry sectors that do and do not already have derivatives traded, and also cover both exchange traded and OTC derivative contracts. Derivative Initiatives Announced by B2B Exchanges Sector B2B Exchange Initiative State of Offering Energy EEX Electricity derivatives, using Eurex platform Already trading Chemicals ChemConnect Partnership with Chicago Mercantile exchange to develop bulk chemical derivative In development Metals E-Metra Partnership with Eurex to develop rival exchange to LME To be launched Q1 2001 Weather I-wex Runs marketplace for OTC weather derivative contracts Developing exchange traded derivatives with LIFFE OTC marketplace trading, Exchange traded derivatives to be launched in 2001 Shipping Virtual Baltic Planning to offer market place for OTC forward freight contracts Press release
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