Exponential Exchange Information

Exponential Exchange is a modern exchange for the new economy. Exponential Exchange is developing a series of novel indices, tradable financial instruments and a financial innovation platform to manage the risks and opportunities posed by the digital economy and transportation revolution. Exponential Exchange is led by an experienced founding team spanning expertise in derivative markets, structured finance, fintech, data science, and specialized sector experience in automotive finance. Collectively our team has previously co-founded two derivative exchanges (Chicago Climate Exchange and American Financial Exchange) and launched numerous exchange traded products. Exponential Exchange’s launch products are cash settled index futures contracts on wholesale vehicle prices. Currently there is over $500 billion in unhedged exposure to fluctuations in used vehicle valuations. This risk resides in leasing portfolios ($300B), rental fleets ($60B), other commercial fleets, and subprime portfolios. Volatility in used vehicle valuations, as witnessed during the pandemic and the 2008 financial crisis, represent an existential threat to their business and can result in catastrophic financial consequences. Having previously managed this risk for two decades within the auto-finance industry, we have developed novel derivatives to more efficiently mitigate this exposure.