PanXchange: Centralized Trading Platform for Increased Efficiency
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PanXchange: Centralized Trading Platform for Increased Efficiency

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Julie Lerner, CEO, PanXchangeJulie Lerner, CEO
Physical commodities exhibit a high degree of fragmentation and a lack of transparency when it comes to pricing and negotiating deals. There is a lack of benchmark pricing assessment for many commodities, since price reporting agencies do not cover all the different categories thoroughly and accurately. Consequently, the subjective pricing values for such commodities are vulnerable to manipulation. Further, certain products like frac sand are difficult to trade online due to the large number of variables with regard to quality, location, transport, and delivery window as opposed to natural gas, which has few negotiable fields that need to be addressed before commencing a deal. A veteran trader and entrepreneur, Julie Lerner realized this discrepancy and founded PanXchange in 2011 to develop a web-based trading platform designed to provide a market structure solution that is scalable across all commodity markets. “We are aggregating commodities into industry silos, all on a single platform for instant market access, price discovery, and negotiation of complex orders,” states Lerner.

PanXchange’s patented, software-as-a-service platform revolutionizes the way commodity traders locate and execute trades. The platform allows traders to enter orders into an active marketplace that is constantly searching for matches, and manage commodity trading online through any smart device. Traditionally, it takes a team of traders hours to contact multiple brokers and other traders via texts, phone calls, and emails to complete a deal. PanXchange’s platform reduces this time-consuming process to seconds, helping traders focus on increasing profits through greater optionality. “We offer the ability to negotiate every aspect of a physical trade deal while also managing credit risk and counterparty risk,” explains Lerner.


PanXchange’s platform is focused on the idea that strong underlying markets lead to robust derivative markets


At the core of PanXchange’s order matching technology is the ability for traders to bid on or offer multiple options for variables such as quality and shipment window, among others, to best match their books. PanXchange provides traders access to real-time market information including pricing, volume, and geographical trends for a particular commodity across the entirety of the market in real time. The amount of market intelligence generated by PanXchange, and the speed at which it is delivered, ensures that traders gain a competitive edge.

Lerner states, “PanXchange is built to be intuitive for all traders, while maintaining the highest level of security and data integrity.” The platform provides exclusive real-time and historical prices based on trades, live bids and offers, recorded transactions, and assessed market values. From these prices, PanXchange is able to build benchmark pricing assessment values for commodities globally. The platform’s customization for frac sand was launched in Q4 2017, and within two months, PanXchange was able to establish the industry’s first benchmark price for frac sand, enabling traders to better forecast pricing trends and assess spot and forward values. Similarly, PanXchange’s customization for the East African agricultural commodities market has been live for three years in Tanzania, Uganda, and Kenya, with over 30 different products listed on the platform and available for trade. The platform’s functionality resonates with traders globally; whether an oil trader in Houston or a small corn trader in Kenya, a user can easily take advantage of the platform.

Moving forward, PanXchange is expanding globally, exploring new opportunities in Asia and the Middle East, and is excited to address new markets and create benchmark pricing. “PanXchange’s platform is focused on the idea that strong underlying markets lead to robust derivative markets,” concludes Lerner.

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Company
PanXchange

Headquarters
Denver, CO

Management
Julie Lerner, CEO

Description
Founded in 2011, PanXchange develops the trading platform that addresses the demands and problems for firms of all sizes. The company’s trading platform helps the users to add pricing indices, and introduce new product designations and geographic locations. The company seeks efficient processes for locating sales opportunities and negotiable deals and enable the existing systems for easy and efficient trading. The company aggregates trading for all types of physical commodities into one web-based platform, which offers instant price discovery and market access for increases operating efficiency and profit opportunities

PanXchange News

PanXchange Launches Industry’s First Institutional-Grade Industrial Hemp Exchange

Denver - PanXchange, a physical commodities OTC market structure solutions provider, announced the launch of the industry’s first institutional-grade industrial hemp exchange. The marketplace will allow producers, processors, trade houses and end-users to participate in a transparent and efficient cash market for industrial hemp products and will ultimately pave the way for the creation of hemp derivatives contracts.

The opening of the exchange follows PanXchange’s January 2019 launch of the industry’s first hemp price reporting facility, which has provided objective and reliable data to a market primed for explosive growth following its formal sanctioning with passage of the 2018 Farm Bill.* Both the exchange and pricing facility support transactions in the highly demanded raw materials used in the creation of CBD (cannabidiol) products – biomass, crude oil, isolate and distillate – and deliver users the assurance that they are they are interacting with thoroughly vetted counterparties.

“Despite the massive market demand for industrial hemp, the ability for producers to transact with processors and end-users in a transparent, efficient manner is woefully inadequate,” said PanXchange founder and CEO Julie Lerner. “Our robust, electronic trading platform provides much-needed price discovery capabilities along with an unprecedented level of functionality, which is key for market participants who seek to interact with other top-tier stakeholders.”

Commenting on the launch of the platform, PanXchange board member and former S&P Global Platts senior executive Andy Bose said: “PanXchange’s hemp market launch not only creates opportunities for physical market participants, but it also serves as the foundation for regulated exchanges to create derivative contracts that would allow involvement by a broader group of market participants – including institutional investors – eager to take part in this exciting market.”

Since 2011, PanXchange has steadily built a reputation for providing the industry’s most advanced market structure solutions for the physical commodity markets that feed and fuel the world – including frac sand data, which is now the industry’s de facto benchmark. The company’s web-based and mobile-optimized platform enables pricing, negotiation and trading capabilities for a wide variety of OTC products globally, offering market participants better market access, more efficient price discovery and the opportunity to maximize profit or minimize operating costs.

“I’ve watched Julie and team develop markets for frac sand and other OTC commodities for close to a decade now, and believe they have the technology, contacts and expertise needed to do the same for industrial hemp,” Bose added. “This is an incredibly exciting moment for the firm, and I couldn’t be prouder to be a part of it.”