Natural Gas Exchange Inc. (NGX), a wholly-owned subsidiary of TMX Group Inc., today announced that its physical crude products are now available for trading on IntercontinentalExchange Inc.'s (ICE) electronic trading platform, WebICE. ICE is a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets.
The launch is pursuant to the agreement NGX and ICE entered into in January 2011.
As part of the agreement, NGX will provide clearing services for the new physical crude contracts traded on ICE. Since December 2010, ICE has offered financial products against TMX Group's Canadian crude indices.
“I'd like to thank our customers for working with us on this transition,” said Peter Krenkel, President, NGX. “We believe this system provides our customers with state of the art trading technology, which will serve our crude oil clients and the market well as liquidity continues to develop.”
The addition of physical crude builds on the existing clearing and technology alliance between ICE and NGX, in which ICE provides trading technology to NGX for Canadian natural gas and power markets, and NGX provides physical clearing services for ICE's U.S. physical natural gas markets.
