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NORTH AMERICAN
ENERGY CREDIT AND CLEARING (NECC), THE CLEARING CORPORATION
(CCORP) AND INTERCONTINENTALEXCHANGE (ICE) ANNOUNCE LAUNCH
OF PHYSICAL ENERGY CLEARING
Chicago,
June 8, 2005
The
North American Energy Credit and Clearing ("NECC"),
an organization dedicated to creating a clearing solution
for physical energy markets, The Clearing Corporation ("CCorp")
and IntercontinentalExchange (ICE) jointly announce today
that they have successfully launched a physical clearing service
for the energy markets. Yesterday, for the first time, a cleared
power contract that traded on Friday, June 3, was successfully
delivered into ERCOT, the power transmission hub in Texas.
The trade was executed using ICE's electronic platform and
transmitted to NECC to be cleared, using a solution that combines
CCorp's clearing technology and processing services with NECC
settlement and scheduling methodology.
Tricia
Harrod, Chairman of the advisory committee for NECC said,
"This is an important step forward for the industry because
we now have a clearing solution for physical energy that can
provide seamless credit protection through delivery. As new
products are introduced by NECC, we believe this will make
a positive difference for us and for energy markets as a whole.
Stated Sean O'Neal, Director of Merchant Energy at Calpine,
"We are excited about the potential to use NECC's physical
clearing to reduce our collateral requirements and expand
our access to counterparties in Texas and other markets."
George Sladoje is the Chairman of NECC and was former Executive
Vice President at CBOT and the Chicago Stock Exchange. Of his company's
accomplishment he said, "Our solution is the first of its kind
in the U.S. to provide physical energy market participants the opportunity
to clear, and thus credit protect, their power and natural gas positions
through delivery. And, this arrangement will result in freeing up
significant amounts of cash that is currently required as collateral
to separately support forward and physical delivery positions thus
enhancing overall market efficiency, particularly in power markets."
Richard
Jaycobs, CEO of The Clearing Corporation, which provides the clearing
systems and processing services for NECC, said, "We welcome
this opportunity to enter the physical energy market space with
NECC. Our agreement with NECC emphasizes our commitment to extending
the spectrum of OTC cleared products in the energy marketplace.
NECC's use of CCorp's Concero™ technology solution - a proven
and time tested clearing platform- demonstrates the robust capabilities
of our systems to meet the unique needs of physical energy markets."
About NECC
North American Energy Credit and Clearing, organized under
the laws of the state of Delaware, is privately held and based
in Chicago, IL. NECC's stated mission is to promote capital
and market efficiency, resiliency and diversity in energy
markets, primarily through an effective credit and clearing
solution that integrates the physical and financial markets.
NECC's management team has a substantial history in launching
and operating physical energy markets. For more information
on NECC visit www.necclear.com.
About The Clearing Corporation
The Clearing Corporation is a stockholder-owned, Delaware
corporation now in its 80th year of business. The Clearing
Corporation serves numerous clients in a variety of markets
and is the only active independent derivatives clearinghouse
in the world. Additional information on The Clearing Corporation
is available at www.clearingcorp.com.
About IntercontinentalExchange®
IntercontinentalExchange (ICE®) operates the leading global
marketplace for electronic trading in energy commodity futures
and OTC contracts on its Internet-based trading platform.
These contracts principally include oil, natural gas and power.
ICE conducts its markets for futures trading through its subsidiary,
the International Petroleum Exchange (IPE). Europe's leading
energy futures and options exchange, the IPE provides a regulated
marketplace in which participants use futures and options
to manage their price risk exposure. The company also offers
services to support the broader trading and risk management
infrastructure, including cleared OTC products, electronic
trade confirmations and market data. ICE is based in Atlanta,
Georgia, with offices in Calgary, Chicago, Houston, London,
New York and Singapore. For more information, please see www.theice.com.
Media contacts:
CCorp --Andrew
Yemma, Intermarket Communications+1-212-888-6115
x 225
NECC--Becky
A. Kilbourne, Marketing and Public Affairs, bkilbourne@necclear.com,
+1-626-445-0226
ICE--Kelly
Loeffler, VP Investor and Public Relations, +1-770-857-4726
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