The Norwegian Ministry of Finance has given NOREXECO ASA a license to operate as a regulated market exchange. NOREXECO plans to open up for trading before the end of 2014 and will become the world’s first and only dedicated exchange for pulp and recycled paper.
The license covers financial derivatives within forestry and paper. The first product listed on NOREXECO will be pulp (softwood and hardwood).
Stein Ole Larsen, CEO
Transactions on NOREXECO will only be open for exchange members. NOREXECO will offer a fully transparent system with equal risk management opportunities for all participants. Trading will be compliant with national regulations, EMIR (Europe) and the Dodd Frank Act (USA). All transactions will be cleared through the reputed partner European Commodity Clearing AG in Germany.
“The international pulp market has historically been volatile. Despite the fact that it is nearly the same size as the aluminium market, the pulp market does not have an established exchange for trading. We have been welcomed as a stabilizing factor, and we are very optimistic about the opportunity to move a large share of the trading from the bilateral and the OTC market to a fully regulated marketplace,” says Stein Ole Larsen, CEO of NOREXECO.
Larsen says that his ambition is to give both the industry and the financial sector a regulated exchange for financial contracts. “It is about time that the forestry and paper industry gets the same opportunity for risk management as other mature industries, and we are very excited to soon open up for trading,” Larsen adds.