Connamara Systems, a provider of exchange matching engine technology, is partnering with MaterialsXchange, a startup electronic marketplace for buying and selling raw materials, to build a dimensional lumber exchange.
The first commodities MaterialsXchange will address are dimensional lumber and wood products and the exchange is expected to go live in the fourth quarter of 2019. MaterialsXchange plans to bring the ease of an ecommerce solution combined with the “sophistication of the modern capital markets” to the lumber industry by using Connamara’s Exchange Platform 3 (EP3) technology, a customizable exchange platform product.
“MaterialsXchange has a deep understanding of the industries involved in raw materials,” Jim Downs, CEO of Connamara Systems, said in a news release. “They have an ambitious vision to develop marketplaces for these industries and our EP3 technology, alongside our prior experiences building exchanges and working with entrepreneurial leadership, makes for a great combination.”
The companies, both based in Chicago, said the lumber buying market is highly fragmented and the “complex, cumbersome, and entirely manual process” between buyers and sellers make the market “ripe for digital disruption.”
“We recognized the need for a firm that has not only the technological expertise, but the capital markets know-how necessary to bring our vision for MaterialsXchange to reality,” said Michael Wisnefski, CEO and founder of MaterialsXchange. “Connamara’s technology expertise and experience with the unique requirements for our exchange product make them the perfect fit for this project.”
