Natural Gas Exchange, Inc.

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Natural Gas Exchange, Inc.
Founded 1994
Headquarters Calgary, Alberta, Canada
Products Exchange and clearing agency
Website http://www.ngx.com/

The Natural Gas Exchange, Inc. (NGX), headquartered in Calgary, Alberta, is owned by the Intercontinental Exchange (ICE), who acquired it from TMX Group in December 2017.[1] NGX provides an electronic trading platform, clearing and data for trading North American natural gas and power markets.

Launched on February 10, 1994, NGX offers spot and forward energy markets. NGX posts its markets on the ICE's WebICE trading platform, and uses ICE's clearing services.[2]

As of 2014, NGX had more than 250 "contracting parties" in the US and Canada, trading on the platform.

History

In early 1993, with the deregulation of the natural gas industry, Westcoast Energy envisioned an electronic platform for the Canadian market for buyers and sellers of natural gas using standardized rules. It was believed that the fungible nature of the commodity, coupled with an innovative and evolving base of market participants and an increasing market size, provided an opportunity for the electronic trading of natural gas in Canada.

The vision for NGX also included clearing and settlement. NGX has operated since its inception as a marketplace where NGX acts as the central counterparty to all its transactions, including central position netting, and anonymous trading.

On Dec. 12, 2008, the Commodity Futures Trading Commission (CFTC) issued an order granting Natural Gas Exchange, Inc. (NGX) registration as a derivatives clearing organization (DCO) pursuant to Section 5b(b) of the Commodity Exchange Act (CEA). As a registered DCO, NGX is authorized to clear over-the-counter derivative instruments based on energy products that could qualify as exempt commodities as defined in Section 1(a)(14) of the CEA.[3]

Products and Services

NGX products and clearing services are available through ICE‘s WebICE trading platform.

Key People

References

  1. TMX Group Completes Acquisition o fTrayport and Sale of NGX to Intercontinental Exchange. NBC.
  2. Press Release. NGX.
  3. Press Release. CFTC.