CBL Markets and Xpansiv Launch a New Era for Commodities: Production Data Can Now Be Traded on a Spot Exchange
SAN FRANCISCO, May 8, 2019 /PRNewswire/ -- CBL Markets (CBL) and Xpansiv today announced a pivotal development in the digitization of global commodities: the transfer of a spot contract based on authenticated production data in a regulatory-compliant marketplace. "The data pipes are ready," said CBL Managing Director Nathan Rockliff. "CBL is the first market to offer spot contracts derived directly from authenticated source production data. This changes everything."
Xpansiv recently partnered with CBL, the leading commodity spot exchange for environmental markets. "The technological infrastructure to connect the entire industry has been proven," said Xpansiv CEO Joe Madden, "from source data to market to post-trade settlement—all in an integrated, data-driven ecosystem. Intelligent Commodities™ have quickly moved from concept to reality."
The partnership between Xpansiv and CBL has resulted in a public trading forum for Digital Feedstock™, a new data format that combines data science, cryptography, and distributed-ledger technologies to support the digital migration of the commodity sector. Digital Feedstock bundles authenticated source production data with secondary data in a single data set, providing valuable information about tradable commodities in a transactable format.
"We're applying principles from the digital migration of industries like music and retail to the commodity sector," Madden said. "Buyers, insurers, lenders, and shareholders are all demanding more information, and we've developed the technology to meet that demand. Buy-side demand for more information across verticals in the multi-trillion-dollar commodity sector is increasing exponentially. Leading producers have jumped on the opportunity to extract value from something they're already producing—data."
CBL provides a unique marketplace for the trade and settlement of myriad new data-driven products. "Market participants are looking for greater product innovation and bespoke offerings to help meet their corporate and compliance needs," said Adam Raphaely, Head of Emissions and Renewable Energy at Mercuria Energy America, Inc. "Digital Feedstock–based contracts provide a mechanism to meet the market's demand for more information, and give individual counterparties assurance about the integrity of the products they transact."
"This development is just the beginning," Rockliff added. "We're working on a host of Digital Feedstock–based products to meet burgeoning demand for the trading of differentiated commodity products. In the coming months, we'll be launching our first exchange-traded product—Responsibly Produced Natural Gas, which market participants can transact with efficiency, transparency, and ease."
"Markets require information to efficiently distribute resources," Madden said. "Everyone wins when markets are truly efficient in valuing financial, human, and natural capital. This development brings us one step closer to harnessing the power of markets to deliver a prosperous and abundant future."
About CBL Markets
CBL Markets provides access to the world's energy and environmental commodity markets, facilitating the secure and seamless trading of commodities like carbon, renewable energy, water, and gas. cblmarkets.com
About Xpansiv
Xpansiv transforms primary production data into Digital Feedstock, a new file format that delivers secure, comprehensive information to global markets. For the first time, commodities can be traded in a digital format that includes a deeper accounting of their true cost and value. Xpansiv is dedicated to improving the way commodities are produced, managed, and traded worldwide. xpansiv.com
Contact: Rob Dalton, Xpansiv VP Marketing & Communications—rdalton@xpansiv.com
Share this article