AGORA-X GETS BACKING FROM NASDAQ FOR COMMODITY CONTRACTS ECN

Posted February 28, 2008

NEW YORK – Commodity risk management firm FCStone Group Inc. has received a commitment from The Nasdaq OMX Group Inc. for a $7.5 million investment to own a 20 percent stake in FCStone’s Agora-X LLC subsidiary that is developing a new electronic communications network for institutional trading of over-the-counter (OTC) commodity contracts.

“Financial institutions and global companies seeking to hedge energy and agricultural assets will find strategic value in this efficient, liquid trading platform,” says Pete Anderson, FCStone’s Chief Executive Officer. “FCStone has served as an incubator for Agora-X to deliver better, more efficient order fulfillment for OTC participants, and we look forward to making this market a reality.'”

Agora-X is scheduled to launch in mid-2008, initially handling option “look-alikes” in energy and agricultural commodities, as well as commodity swaps. Agora-X will scale to add other OTC derivatives, and the Nasdaq OMX investment will help develop this capability.

“Partnering to develop Agora-X fits with Nasdaq OMX's strategy to bring efficiencies and cost savings to the broader trading arena,” says said Chris Concannon, Executive Vice President, Nasdaq OMX. “We believe that with Agora-X, OTC commodity traders can benefit from the same efficiency, cost savings, transparency and liquidity that Nasdaq OMX has brought to the equity markets.”

The Agora-X matching engine is designed to provide rapid, low-cost OTC order fulfillment and clearing, including capability for algorithmic trades. “The global trading community has seen tremendous growth in OTC commodities and related derivatives, but the technology hasn't kept pace,” says Brent M. Weisenborn, Chief Executive Officer of Agora-X. “Financial institutions and companies hedging energy and agricultural positions through OTC contracts currently rely on a call-around system. Agora-X will transform this market by offering traders greater liquidity, a clear view of pricing and quick fills on orders.”