Space Resources Commodities Exchange

Abstract

In recent years, a new opportunity has evolved with the discovery of water on the Moon and a new vibrant entrepreneurial approach to space exploration. The development of space will require significant amounts of resources to support the growth of this new economy. A space resources commodities exchange (SpRCEx) could exist to facilitate transactions of these resources. For companies wishing to compete in space, a commodities exchange offers meaningful value in the form of risk mitigation for market participants buying and selling to/from the exchange. Further, marketplace services such as resource storage and data and listings provide exchange owners a revenue stream uncorrelated to trade volume, thereby reducing operational risk. Although it is not currently feasible to establish an SpRCEx, this study focuses on the development and execution of a dedicated exchange assuming certain conditions are met. After identifying these critical assumptions, primarily the stable supply of at least one space resource, and the presence of significant market participation and trade volume, the authors conclude that a dedicated exchange offers relative value for all market participants, including buyers, sellers, speculators, and owners.