Adobe Stock / Tomasz Zajda

MaterialsXchange (MX) an electronic marketplace for buying and selling raw materials, went live earlier this week. The first transaction was executed shortly after the marketplace launched, according to a news release.

The first listings on the marketplace are wood products, specialty oriented strand board (SOB), European spruce lumber, and southern yellow pine lumber. The first transaction on MX “marks the beginning of a new and efficient era for commodity materials markets,” according to the company.

The raw materials markets have historically been impeded by a lack of price transparency and an inefficient “call around” structure, according to the MX news release. Payment processes have historically been “archaic and fraught with credit risk for sellers.” MX aims to provide a solution for these issues. The platform’s two-sided price format, with transparent data, gives all participants insight and enables buyers and sellers to place bids in real-time without the task of price extraction. The platform is able to apply the data-driven solutions to the wood products market, which has lacked a digital solution for managing the supply chain of more than 3 million truckloads of softwood lumber and structural wood panels produced each year.

“MX has a team of individuals from the financial trading and technology industry who identified inefficiencies in the raw materials spot markets and built an innovative and easy-to-use solution,” Mike Wisnefski, CEO of MaterialsXchange, said in a public statement. “The MX platform, with its combination of transparent market data, automated back-office functionality, and accessibility, provides market participants with meaningful gains of efficiency and cost savings.”

In the coming months, MX plans to expand the reach of the marketplace across the United States and launch new products from other industries on the platform. Connamara Systems, a partner of exchanging matching engine technology, partnered with MX in September to build a dimensional lumber exchange.