"We recently asked all of our Clearing Members what system capabilities they required for our next-generation clearing system, and with those detailed results, we identified onExchange ECS as the best solution for NYBOT and NYCC members and markets," said George Haase, President of the New York Clearing Corporation. "onExchange ECS allows us to continue our history of innovation by offering the latest in clearing technology, such as Internet connectivity, real-time data, real-time risk management functionality, and it brings us one step closer to our goal of Straight-Through-Processing (STP) -- all at a very attractive price."
ECS is a modern, scalable framework, which is deployable on Sun Solaris™, OpenVMS™, and Windows 2000 ™ platforms. Using modern technology standards, such as Java J2EE, onExchange's framework can be readily integrated with exchange trade management, reporting and other systems while providing full Internet connectivity, real-time position reporting, and other functionality sought by clearing member firms. New exchange products can be seamlessly incorporated into the clearing system without additional programming or system downtime required in existing systems.
"We are pleased to provide NYBOT and the NYCC with a framework for enhancing their current clearing systems in a way that meets the technological and operational needs of their memberships," said Richard Jaycobs, CEO of onExchange. "onExchange ECS incorporates new technologies and standards into trade clearing technology by delivering integration efficiencies and business flexibility to exchange and clearinghouse customers, and by bringing clearing operations into a fully extensible, web-supported environment."
"Our selection of ECS reflects the exchange's commitment to providing a clearing system that combines leading-edge clearing functionality with a common technology standard," said Patrick L. Gambaro, Interim Chief Operating Officer at NYBOT. "The onExchange technology will also enable us to provide development and operational benefits to all NYBOT market participants coupled with the advantages of our new floor trading technologies, such as our Electronic Order Routing (EOR), and Order Book Management (OBMS)/Automated Trading Card (ATC) systems."
The onExchange system will support NYBOT's EOR/ATC/OBMS systems. The EOR system, which has already been successfully deployed on NYBOT's backup trading floor, allows a market user to send an order electronically over the Internet to the broker in the trading ring, by way of the broker's booth. The OBMS works in conjuncture with NYBOT's EOR system by allowing the Session Manager in the booth on the trading floor to route the order to the floor trader who's using a wireless handheld device. Once filled, the trade is electronically sent to the originator, trader's booth clerk, and NYBOT back offices for processing.
NYBOT plans to continue its implementation of the EOR/ATC/OBMS systems once the exchange moves into its permanent home in the New York Mercantile Exchange building (NYMEX). The exchange's offices were located in Four World Trade Center and were totally destroyed in the September 11th terrorist attacks. NYBOT has since been operating out of its backup trading facility in Long Island City, Queens, New York, and announced February 26, 2003, that it was moving into available space in the NYMEX building.
onExchange, Inc., provides an open-standards-based back office technology systems and development frameworks to clearinghouses, banks, and brokerage firms. Its technology has been selected for use in energy clearing houses such as London Clearing House and EnergyClear Operations Company LLC. onExchange technology partners include BEA Systems Inc., IBM Corporation, Hewlett Packard, Oracle Corporation and Sun Microsystems, Inc. The Company is privately held and headquartered in Cambridge, Mass. Its Website address is www.onexchange.com.
The New York Clearing Corporation (NYCC) is the designated clearinghouse for all the exchange markets of the New York Board of Trade (NYBOT). The NYCC was originally organized in 1915 as the New York Cotton Exchange Clearing Association and later became the Commodity Clearing Corporation. Although a subsidiary of the New York Cotton Exchange (NYCE), the New York Clearing Corporation has its own separate membership, Board of Directors, elected officers and operating staff. The Clearing Corporation provides clearing services and financial stability for its clearing members. In 1952, the New York Clearing Corporation was the first clearinghouse in the world to install electronic data processing equipment.
The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar and Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges and their subsidiaries and divisions, NYBOT offers an expanding range of agricultural, currency and index products. Information about the New York Board of Trade and the New York Clearing Corporation can be found at www.nybot.com and www.nybotlive.com.
