I get that this could be an asymmetric bet, but why do you think one of the established exchanges aren’t trying to enter the same space? This is a not a retail punter space, so why would established trading houses, utilities, lng producers etc ever consider placing trades on a start up exchange? Come to think about it, why aren’t Glencore, Vitol and the like on abaxx’s shareholder list?
This is a great question. For one, they are using Nasdaq's technology so that should ease concerns. As stated in the piece the team is formidable. I don't name check him but Thomas McMahon who is on board with Abaxx was the CEO of the Singapore Mercantile Exchange. Kyle Bass will be trading on the exchange. Robert Friedland will be. Eric Townsend will be. I'm not in the trenches but Josh has stated that he will use the delay in final approval to continue selling and onboarding traders. Meanwhile Josh has continued gobbling up shares in the open market.
Josh mentioned in one of his interviews that he has already received interest from energy companies, banks and sovereign wealth funds in buying a piece of the exchange. It will be interesting to see what happens when the exchange is launched and starts to ramp up. Perhaps Singapore owned Temesak / Pavilion would be interested?
I do not disagree. Hopefully paired energy offsets with the AirCarbon Exchange help on board new users as well. I'm also not exactly sure who participated in the bought deal financing the company did but being an investment bank run process I would assume that included some more institutional investors.
Awesome write up and pairing with James' work on Abaxx. How are you thinking about the time horizon for this investment? It is such early days for the company so is this a decade long buy & hold?
I don't subscribe to the #neversell philosophy across an entire portfolio a la Chuck Akre but lets just say I am hoping to get my entire basis back one day in the distant future in the form of a special dividend after some serious execution
I get that this could be an asymmetric bet, but why do you think one of the established exchanges aren’t trying to enter the same space? This is a not a retail punter space, so why would established trading houses, utilities, lng producers etc ever consider placing trades on a start up exchange? Come to think about it, why aren’t Glencore, Vitol and the like on abaxx’s shareholder list?
This is a great question. For one, they are using Nasdaq's technology so that should ease concerns. As stated in the piece the team is formidable. I don't name check him but Thomas McMahon who is on board with Abaxx was the CEO of the Singapore Mercantile Exchange. Kyle Bass will be trading on the exchange. Robert Friedland will be. Eric Townsend will be. I'm not in the trenches but Josh has stated that he will use the delay in final approval to continue selling and onboarding traders. Meanwhile Josh has continued gobbling up shares in the open market.
Good to hear Mr Crumb is adding.
But would be much better if the world’s big energy traders were on the shareholder list
Josh mentioned in one of his interviews that he has already received interest from energy companies, banks and sovereign wealth funds in buying a piece of the exchange. It will be interesting to see what happens when the exchange is launched and starts to ramp up. Perhaps Singapore owned Temesak / Pavilion would be interested?
I do not disagree. Hopefully paired energy offsets with the AirCarbon Exchange help on board new users as well. I'm also not exactly sure who participated in the bought deal financing the company did but being an investment bank run process I would assume that included some more institutional investors.
Awesome write up and pairing with James' work on Abaxx. How are you thinking about the time horizon for this investment? It is such early days for the company so is this a decade long buy & hold?
I don't subscribe to the #neversell philosophy across an entire portfolio a la Chuck Akre but lets just say I am hoping to get my entire basis back one day in the distant future in the form of a special dividend after some serious execution
Will the gold and battery metals be physically settled as well?
Without a doubt.