Navitas Resources
Press Release
A Singapore-based energy specialist behind the launch of a physical commodity exchange is ready to start using a new currency unit to price bunker trades.
Navitas Resources said it had “no doubt” that using the new unit would give its trading platform “a leading edge” over traders pricing bunker fuel in US dollars.
The World Currency Unit (Wocu) has been developed by the UK-based WDX Organisation.
WDX has issued a statement saying it was “delighted to announce the signing of an extended contract with Navitas Resources.”
“Having signed the initial agreement earlier this year, the two companies have now finalised the details of the licence and transaction fee structures to launch Wocu priced commodity trading,” it said.
The plan is to use the Wocu to price physical contracts on the Navitas' NR-X Physical Commodity trading and procurement platform (www.nr-x.com).
“As bunker oil drives the majority of sea-going trade, it is a commodity of primary importance,” said WDX.
It added that bunker fuel would be the first physical commodity in the world to be priced in Wocus.
“Trading bunker oil in Wocus rather than dollars is anticipated to allow companies to achieve maximum benefit from the Wocu's particular advantages, namely reduced exchange rate volatility and an effective partial hedging mechanism, reducing spot and forward inconsistencies in bunker oil pricing.”
One Wocu was priced at $1.67 on Wednesday.
Navitas Resources has secured an agreement from "one of the world's largest shipping companies" to use the NR-X system as one of their bunker procurement methods, Navitas joint-CEO Tom James told Bunkerworld over the weekend.
James said that Navitas Resources is currently holding back from officially 'going live' with NR-X, its internet-based trading platform for marine fuels, to satisfy demand from participants to add more ports and functionality.
The completed and updated 'live' version of NR-X is already available, but is now undergoing final approval by early market participants.
"We were prepared to launch live trading on 1st March but feedback from some of the world's biggest shipping companies and also from key partner suppliers meant we have added more ports at the request of suppliers and also monthly contracts to the NR-X system," Navitas' other joint-CEO Francesca R Zerenghi told Bunkerworld on Saturday.
"Due to this we must allow users to go through another short approval testing period to ensure that the version with the full 'live' trading functionality is running smoothly on their computers at their offices," Zerenghi explained.
Both James and Zerenghi reiterated that the core technology of the NR-X trading platform itself is proven technology which already supports large financial swaps markets in interest rates and other markets for large brokerage firms in Asia and Europe.
Asked to give a new estimated date for the launch, James said that "once our early market participants are happy with the final 'live' version of the NR-X trading system we will immediately go to 'live' trading on the platform".
Bunkerworld on Sunday confirmed that several new features have been added to the NR-X system, as first mentioned by James late last Friday.
These include monthly calendar contracts, monthly forward contracts, low sulphur products for emission control areas, and more niche ports "at the request of suppliers willing to make offers on these ports, allowing the market to expand and offer better prices to the bunker industry".
Independent emerging markets developer Navitas Resources launched NR-X as a new physical commodity exchange platform with the first market on it being marine fuels.
Consumers will be able to tender for quotes at different ports and for different marine fuel products, while suppliers will be able to place offers in the market 24 hours every day of the week for bunkers at their facilities.
A full transcript of exclusive interviews and detailed background surrounding NR-X is available in the latest edition of the Bunkerworld magazine in March.
http://www.ctrmblog.com/2010/02/what-exactly-is-a-wocu/
http://www.emii.com/Articles/2400237/FX/Other-Articles---FX/WDX-Prices-Product-In-World-Currency-Unit.aspx
http://www.bankingtech.com/bankingtech/article.do?articleid=20000173102
24 February 2010, London, Singapore: WDX Organisation Ltd., the company behind the Wocu (World Currency Unit) is delighted to announce its agreement with Navitas Resources, the specialist energy and climate commodity trade facilitator. In a world first, the new Navitas electronic exchange intends to price marine fuel (bunker fuel) in Wocu, alongside USD, from Q2 2010. The agreement follows Navitas joining WDX’s Early Participation Scheme earlier this year.
Importantly
this will enable shipping companies to tender in either Wocu or Dollars for
quotes at various ports around the world for marine fuel products and allow
suppliers to place offers in the market 24/7. The marine fuel market is around
200 million metric tonnes a year globally, valued at approximately $100bn per
year. Because the Wocu is
a derivative of the exchange rates of the world’s top 20 economies (as measured
by GDP) its use is expected to significantly reduce currency fluctuations compared
to pricing in USD. It is anticipated that both consumer and producer will
benefit greatly from the smoothing effect of the Wocu, as the
oil industry and consumers are exposed significantly to USD currency volatility.
Navitas Resources, based in Singapore, is in the business of developing trading markets. Its NR-X electronic online platform allows suppliers and consumers to buy, sell and tender in various physical commodity markets over a safe, anonymous and secure network. It is the first physical trading platform to support the Wocu, differentiating it substantially from other trading platform exchanges.
Francesca Zerenghi, CEO of Navitas Resources, said, “We are taking a leading role in the development of non-US denominated commodity transactions. Both energy companies and developing countries with significant US dollar exposure will have the opportunity to reduce volatility in their earnings and balance sheet through the use of the Wocu. We became an Early Participation Scheme member of the WDX Organisation Ltd, along with leading foreign exchange companies and securities firms, as we strongly believe that developing markets should have access to a trading platform where they can control their risk much more effectively. Reducing exchange rate fluctuation risk enhances this considerably. ”
Michael King, CEO of WDX Organisation, noted, “We are delighted that a forward thinking and energetic partner such as Navitas Resources is employing the Wocu in such an important arena. We look forward to working with Navitas Resources in this and other areas, a number of which are already under consideration.”
http://www.bunkerworld.com/news/i91678/Bunker_trading_platform_to_go_live
Navitas Resources says its trading platform for marine fuels has successfully completed a three-month trial.
The Singapore-based company said it was ready to 'go live' with the platform on March 1.
“Since then the company has been running trials with users around the world,” said a Navitas statement sent to Bunkerworld.
“It has received positive and encouraging feedback from the bunker industry and from shipping companies on both the trading platform technology as well as the overall commercial business model.”
Navitas said the trading platform allowed suppliers and consumers across the globe to buy and sell and tender in “physical commodity markets in a safe, anonymous, and secure network.”
“It is free to shipping companies (buyers) with no annual fee or joining fee. It will offer access to multiple suppliers at ports all around the world,” said a company statement.
In the run up to the live trading launch, NR-X has been promoting its Early Market Participant Supplier Scheme. which offers suppliers special commission rates for deals executed on NR-X.
Navitas Resources is a private company specialising in energy and climate commodity markets.
MH0247
Privately-owned Singapore energy consultant Navitas Resources has confirmed that it will begin its bunker and marine fuel oil trading platform NR-X on March 1, the company said Tuesday."Following a very successful 3-month trial by both bunker suppliers and shipping companies, Navitas Resources Pte Ltd will go live with its innovative NR-X trading platform," it said in a statement. NR-X allows suppliers and end-users around the world to place tenders,
bids and offers for various physical commodity markets.
Bunker and marine fuel oil buyers will not need to pay an annual fee or joining fee, and will be able to procure fuel from multiple suppliers at global ports.
Currently, the company is promoting its Early Market Participant Supplier Scheme, which offers bunker and marine fuel oil suppliers discounted
commission rates for a one-year period for deals executed on the platform, the company website showed.
The NR-X platform, which was announced last year, supports market transactions for 180 CST and 380 CST bunker fuel, marine gasoil and diesel oil, Platts reported earlier.Meanwhile, the Singapore Exchange is also looking to get into the bunker fuel trading sphere, with the launch of a 380 CST fuel oil futures contract on
February 22.
Singapore -- the world's largest bunker port -- sold a record-high volume of 36.4 million mt of bunker fuel in 2009, up 4.2% from 2008, despite the global economic downturn. Between 2001 and 2009, bunker and marine fuel
oil sales in Singapore, has grown by around 16 million mt from 20.351 million mt in 2001, data from the Maritime and Port Authority of Singapore showed.
http://www.risk.net/energy-risk/news/1591071/navitas-launch-bunker-marine-fuels-trading-platform
Singapore-based energy company Navitas Resources has announced it will launch the first trading platform for bunker and marine fuels on March 1.
The NR-X platform will trade spot contracts for bunker and marine fuels with the aim of creating a forward bunker and marine fuel market, which in turn could help develop a derivatives market.
"Players are looking for better ways to hedge bunker and marine fuel more efficiently and we are trying to encourage transparency and get a forward physical market one or two months out," says Tom James, chief adviser to Navitas Resources. "We are discussing future developments with regulated exchanges and clearing houses regarding a derivatives market for these contracts."
Shipping companies currently use the wholesale cargo swaps market for fuel to hedge their risk and there is basis risk between pricing the cargo market and the price charged in the port, says James. "Our focus is the delivered market for physical bunker and marine fuels to the ships from suppliers and there is interest from the industry to do this," he says.
"The bunker and marine fuel market is large and so far it has not been given any real development on the exchanges so there is great potential," says James. "We expect to see steady development on the NR-X platform."
Navitas Resources has signed up as an early market participant (EMP) of the WDX Organisation World Currency Unit (WOCU). www.wocu.com
Navitas is working with WDX to offer WOCU denominated trading on its NR-X Procurement platform in the near future
For more information contact us at info@navitasresources.com
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...News
A Singapore-based energy specialist behind the launch of a physical commodity exchange is ready to start using a new currency unit to price bunker trades.
Navitas Resources said it had “no doubt” that using the new unit would give its ...
http://www.risk.net/energy-risk/news/1591071/navitas-launch-bunker-marine-fuels-trading-platform
...Navitas Resources has signed up as an early market participant (EMP) of the WDX Organisation World Currency Unit (WOCU). www.wocu.com
Navitas is working with WDX to offer WOCU denominated trading on its NR-X Procurement platform in the near future.
For more information ...