IntercontinentalExchange (NYSE: ICE), a leading operator of global derivatives exchanges and over-the- counter (OTC) markets, and Natural Gas Exchange Inc. (NGX), a leading energy exchange and clearinghouse, will offer clearing and settlement services for physical OTC natural gas contracts at the Henry Hub delivery point beginning Monday, April 7, 2008, pursuant to their previously announced alliance.
As with the physical clearing services successfully introduced on March 3 at PG&E Citygate and GTN Malin, NGX’s clearing organization will serve as the central counterparty for the physical delivery and financial performance.
"The launch of physical clearing for two of ICE’s Western hubs earlier this month surpassed our initial expectations," said Jeffrey C. Sprecher, chairman and ceo of ICE. "We’re pleased to have seen strong double-digit growth in the liquidity of these first cleared physical contracts, and strong demand from market participants for this service at the benchmark Henry Hub location."
Peter Krenkel, president of NGX added: "We’re delighted that so many ICE customers in the West have responded positively to the security, efficiency and liquidity NGX clearing offers, and we expect to see even more interest at the Hub."
