- Integrated trading, clearing offering to transform the markets for physical gas and power in U.S., Canada
- Joint conference call to be held at 8:45 a.m. ET (7:45 a.m. CT)
- Media questions are invited from 9:15 a.m. ET (8:15 a.m. CT)
TSX Group Inc. (TSX: X), and IntercontinentalExchange, Inc. (NYSE: ICE) today announced the formation of a transformative technology and clearing alliance for the North American natural gas and Canadian power markets. The alliance brings together the respective strengths of TSX subsidiary Natural Gas Exchange Inc. (NGX), Canada’s leading energy exchange and North America’s leading physical clearing and settlement facility, and ICE, the world’s leading electronic energy marketplace and soft commodities exchange.
Under the arrangement, the cleared and bilateral markets for North American physical natural gas and Canadian electricity operated by NGX and ICE will be offered together on ICE’s leading electronic commodities trading platform. In turn, NGX will serve as the clearinghouse for these products. This will complement the clearing ICE offers in its highly liquid over-the-counter markets for financial contracts. NGX will also use the ICEBlock(sm) system to electronically accept for clearing off-exchange transactions in financial gas and other energy products.
NGX’s highly effective clearing and settlement model has achieved unparalleled success in facilitating physical energy transactions, giving Canada exceptional liquidity in its physical gas markets. NGX has enabled almost $300 billion of physical gas transactions since its inception in 1994. In 2006 more than 8.1 trillion cubic feet of gas traded on NGX.
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