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The Exchange and Kiodex have further agreed to co-market Kiodex's companion product, the Kiodex Risk Workbench, which will be highly compatible with the Kiodex Trade Engine on enymexsm. The Kiodex Risk Workbench will provide state-of-the-art portfolio management and risk analytics to its customers.
The Kiodex Trade Engine is an automated, scalable, fault-tolerant order-matching system that will enable customers to enter orders for cash and derivative commodity products and receive executions and confirmations.
enymex(sm), which will be launched early in 2001, will provide a global one-stop shop for commodity risk management, providing a neutral internet-based trading and clearing platform for energy and metals products that were previously limited to over-the-counter markets where participants are exposed to counterparty credit risk. The Exchange plans to use its proven clearing infrastructure to introduce complete counter-party risk management, and create net margining with Exchange futures markets by calculating a consolidated clearing position. Subsequent enymexsm functionality will also provide an internet-based interface to the established Exchange futures market by routing futures orders to the trading floor and the NYMEX ACCESS® electronic trading system, depending on the session.
Exchange Chairman Daniel Rappaport said, "After reviewing nearly 50 potential system providers, we found that the Kiodex system most closely matched our functional and technical requirements. We were also impressed by the extensive array of energy and commodity industry expertise and technological proficiency represented by the Kiodex personnel and the trading and risk management systems with which they have been involved."
Dr. R. Martin Chavez, chief executive officer of Kiodex, said, "We're delighted to offer our technology to the New York Mercantile Exchange, the undisputed market leader. The selection of the Kiodex Trade Engine and Risk Workbench demonstrates the Exchange's commitment to promote best risk-management practices and to establish enymexsm as the benchmark for liquid and transparent internet marketplaces."
Kiodex builds trading and risk-management technology and solutions for internet-based commodity markets. Kiodex was created to increase the safety, fairness, transparency, and liquidity of commodity markets. By embedding Kiodex's technology in traditional and emergent commodity exchanges, portals, and web sites, the Company enables users to trade fairly and encourages the proper management of financial products that mitigate risk. Its home page is www.kiodex.com.
The New York Mercantile Exchange is the world's largest physical commodities exchange. It offers a trading forum for such strategic products as crude oil, heating oil, gasoline, natural gas, electricity, platinum, gold, silver, copper, and aluminum futures and options; propane and palladium futures; and options on the spreads between crude oil and heating oil and crude oil and gasoline, as well as certain stock index derivative products. In 1999, its trading volume totaled nearly 110 million contracts. Its internet home page is www.nymex.com, and additional information on its new system is available on www.enymex.com.
The selection of Kiodex is subject to a final system audit by the Exchange.
