Exchange Systems and Trading Platforms

GEM has developed and owns all the Intellectual Property for a porfolio of unique and innovative electronic exchanges and trading platforms. These Financial Technology platforms are core infrastructure for entire markets and are infinitely customisable to suit any marketplace that has serialised products that are (or can be) logged in a registry system. With its latest Registry solution, GEM can even assist markets in taking their physical certificates through the dematerialisation process in preparation for trading. GEM currently provides technology to regional or global markets where various products are actively traded including Carbon, CO2 allowances, renewable energy certificates, emission units, energy efficiency certificates, water entitlements and now commodity infrastructure and equity (shares) including capability to trade financial derivative instruments.

For each market that GEM engages with to develop technology, GEM provides a robust exchange trading platform, ensuring that operators, regulators (if applicable) and market participants have confidence that the marketplace will be fair, orderly and transparent. And most of all-cost effective.

The key features of the trading platforms include:

Platform

Web based platform for posting orders, matching orders, clearing and settling transactions through straight through processing settled on a payment delivery basis

Interface

Interface with banking institutions, registries and market regulators (API preferred)

Security

Started as encrypted CSV files, evolved to web based services and encryption

Software

Software is built upon .NET v4 framework

Hosting

The exchange systems and trading platforms are hosted on Microsoft Azure

User Dashboard

Customised to market and user requirements

Regulatory Settings

Customised to market requirements (rules, processes etc.)

To learn more about the Exchange Systems and Trading Platforms, or to experience a live demonstration, contact us.

Overview

GEM built its first trading platform in 2011 for Carbon Trade Exchange, which facilitates trading in Carbon Credits and Emission Allowances. Since then we have developed markets for water and Renewable Energy Certificates. Case studies of each of these markets are accessible here. We have already used the CTX technology to develop parallel spot exchanges for the US Regional Greenhouse Gas Initiative (RGGI), the Californian cap-and-trade program, and the European Union’s Emissions Trading Scheme (EU ETS), and it is actively seeking opportunities to licence or develop technology for operators in other compliance markets.

Following the Global Financial Crisis a trend has developed where products previously traded over-the-counter (OTC) have moved towards exchange traded environments in an attempt to reduce risk and increase control, by increasing standardisation, capacity and functionality. OTC bi-laterally traded products and derivatives are being replaced with homogenised contracts listed on transparent electronic trading venues often cleared by a central counter party (CCP) and settled using straight through order processing on a delivery versus payment basis.

We recognised that the technology GEM had developed was simple and secure leading to more efficient market places while still delivering fair, orderly and transparent trading. This trend towards electronic trading is a unique opportunity for GEM which is positioned with the technology, experience and global reach to provide your marketplace with this same innovation.