Exponential Used Vehicle Derivatives

An industry first

A new asset class for the automotive ecosystem

Enable a smooth journey through uncertain times

Used Vehicle price volatility has increased significantly over the past decade, and the time for commoditizing the $500B automotive wholesale value market is now.

Our products offer an effective hedge for the automotive ecosystem and exposure to a new asset class for financial firms. And a solution that is economic, transparent, well governed, flexible and scalable.

Increased price volatility equals business instability

The automotive sector is facing growing challenges due to price volatility — a trend that is unlikely to subside because of a number of factors, including EV adoption, globalization of the supply chain, fuel price volatility, autonomous technology and consumer credit cost and availability.

The increase in used vehicle price volatility creates massive exposure for automotive manufacturers, rental fleets, auto insurers and subprime lenders.

Existing solutions aren’t economically or operationally feasible for the market. Doing nothing is not a viable option either, as it could lead to deteriorating financials.

This challenge demands a new approach, one that offers scalability and commoditization.

The first dedicated automotive derivatives market

Exponential Markets Used Vehicle Derivatives is a market solution to hedge residual value exposure.

Our derivatives are cash settled against our underlying benchmarks, which enables a powerful new asset risk management solution for the automotive ecosystem, and a new opportunity for financial firms looking for exposure to an entirely new market.

Unlocking the risk transfer for this new asset class will result in benefits for all market participants, as well as the consumer. It creates a diverse marketplace for automotive residual value risk bringing transparent pricing, regulation, central clearing and standardization.

Cost efficient

Compared to existing risk management solutions

Standardized contract

Our standardized contract, listed on a regulated exchange, settles on our benchmarks, which is fully transparent to the market

Price discovery

Market determined prices guarantee transparency throughout the forward curve.

Central clearing

Market participants are not exposed to counterparty risk

Trading Channels

Exponential Derivatives are currently available over-the-counter, but will be listed on a major exchange in the latter half of 2024. With both our exchange listed and over-the-counter products, our clients can rest assured that their solution is transparent, trustworthy and cost-effective.

Exchange listed

Our exchange listed futures and options will offer simplicity and ease to our clients, with benefits including: Listing with an industry leading derivatives exchange, Block and screen trading, Margin benefits, Incentive programs.

Over-the-counter

With our bilateral swaps and swap options contracts, we work with our clients to craft a transaction that meets the requirements of both parties. The contract size, underlying index, tenor and settlement terms can all be structured bilaterally.