SunGard’s GMI, a clearing and accounting system for exchange traded derivatives, futures and options, now supports Nodal Exchange and is ready to be deployed by clearing members in anticipation of the launch of Nodal Exchange in early 2009. Nodal Exchange is the first electronic commodities exchange dedicated to offering locational (nodal) products and services to participants in the organized North American electric power markets.
Mitigating counterparty risk and improving market transparency through the adoption of a centrally cleared model for trading contracts are key elements to reducing systemic risk in financial markets. Through its support of Nodal Exchange, SunGard’s GMI helps financial institutions achieve transparency with a single platform for listed derivatives and energy processing.
Ann Sacra, president and chief operating officer of Nodal Exchange, said, “We are pleased that SunGard’s customers will now be able to support clearing on Nodal Exchange. Cleared transactions have become even more important in today’s credit environment and we are looking forward to our introduction of cleared nodal contracts in 2009.”
SunGard is now able to deliver programs and detailed documentation for testing and implementation of Nodal Exchange on GMI. SunGard customers who plan to participate in this market can now begin preparing and testing the GMI software for implementation.
LCH.Clearnet will be the Central Counterparty (CCP) clearing all trades on Nodal Exchange. Clearing trades through LCH.Clearnet will help significantly reduce counterparty risk, increase market quality and liquidity, allow post-trade anonymity, and reduce participants’ operating costs through the use of multi-lateral settlement netting. SunGard’s GMI contains comprehensive functionality to support LCH.Clearnet clearing on Nodal Exchange for clearing members of LCH.Clearnet.
Gerry Murphy, president of SunGard’s brokerage and clearance business, said, “SunGard brings a range of expertise in energy and commodity trading, processing and consulting to the energy industry. SunGard’s work with Nodal Exchange offers support for our customers as clearing members and extends the wide spectrum of listed derivatives coverage on SunGard’s GMI platform.”
