The space industry has been majority funded by governments since inception, relying on their deep pockets and national interests to absorb the massive risk of innovation and exploration. The successful handoff of the space industry from government to private enterprise requires new methods to offset the financial risks inherent to the commercialization of space. Enterprises have traditionally turned to derivatives markets to offset the financial risks in large and developing markets. Unfortunately, markets catering to the unique risks present in the space industry do not yet exist. That is why Allocation.Space is building a Swap Execution Facility to enable the hedging of the pricing risks surrounding commodities specific to the industry as well as event risks using novel instruments.
