IntercontinentalExchange (NYSE: ICE), the leading electronic energy marketplace, announced that it will list an additional 13 new cleared contracts in its electronic over-the-counter (OTC) markets beginning July 7, 2006. These contracts will bring the total new contracts listed since March to 57 cleared OTC contracts.
The fifth set of new cleared OTC products consists of natural gas and power contracts that are currently offered on the ICE platform on a bilateral basis. This marks the first time cleared OTC swaps will be available for ERCOT (Electric Reliability Council of Texas). ERCOT serves the power needs of 75% of the state of Texas. The new cleared, cash-settled contracts include:
- Tennessee Zone 0 Natural Gas Basis Swap (Platts Inside FERC)
- Centerpoint Natural Gas Basis Swap (Platts Inside FERC)
- Union, Dawn Natural Gas Basis Swap (Platts Inside FERC)
- ERCOT Financial Power Swap, Houston
- ERCOT Financial Power Swap, North
- ERCOT Financial Power Swap, South
- NYISO Zone A Peak Daily
- NYISO Zone J Peak Daily
- NYISO Zone G Peak Daily
- NePool Peak Daily
- NePool Off-Peak Daily
- NYISO Zone A Off-Peak Daily
- MISO Cinergy Off-peak Daily
ICE pioneered the concept of cleared OTC energy contracts, which provide participants with access to centralized clearing and settlement arrangements while reducing bilateral credit risk and capital required for each OTC trade. ICE provides its cleared OTC products through established clearing firms on the ICE platform and in cooperation with LCH.Clearnet, the largest clearinghouse in Europe. The cleared contracts also enable participants transacting both in ICE Futures markets and ICE’s OTC markets to cross-margin their positions. Pursuant to a license agreement, the natural gas swaps contracts will settle on price benchmarks in Inside FERC published by Platts, the market-leading provider of essential energy information and a division of The McGraw-Hill Companies.
