New institutional-grade marijuana exchange introduced

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The exchange is being offered by physical commodities solution provider PanXchange

The first institutional-grade industrial hemp exchange has come to the US. Launched by PanXchange, a physical commodities OTC market structure solutions provider, the solution is designed to give hemp processors, trade houses, producers and end-users the ability to participate in a cash market for hemp products and is expected to ultimately lead to the creation of derivatives contracts for the hemp investment market.

PanXchange launched the first hemp price reporting facility this past January. That facility, as well as the exchange, support transactions of high-demand raw materials, including crude oil, biomass, distillate and isolate, and provide reassurance to platform users that they are dealing with entities that have been completely vetted.

The company’s founder and CEO, Julie Lerner, explains, “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. 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.”

Andy Bose, a former senior executive with Standard & Poor’s and current PanXchange board member, adds, “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.”

The creation of the exchange is another example of the continued maturity of the overall cannabis space, but, particularly, the direction hemp is taking. As a globally acceptable product that can be used in the creation of an endless supply of goods, hemp is poised to revolutionize economies around the world.