CFTC seeks comment on NGX registration request

The US Commodity Futures Trading Commission is requesting public comments on Natural Gas Exchange Inc.'s (NGX's) application to register as a US derivatives clearing organization. Its US office is in Houston.

Aug. 29, 2008

Nick Snow
Washington Editor

WASHINGTON, DC, Aug. 29 -- The US Commodity Futures Trading Commission is requesting public comments on Natural Gas Exchange Inc.'s (NGX's) application to register as a US derivatives clearing organization. Its US office is in Houston.

The Calgary-based exchange, which has been operating since February 2004, is owned by the Toronto Stock Exchange's parent company, TSX Group. NGX began an operating alliance earlier this year with the InterContinental Exchange in which NGX uses ICE's front end trading technology and provides clearing services for ICE's US physical gas products, according to information at NGX's website.

It says it lists more than 60 physical and forward gas contracts—which can be delivered at 30 Canadian and US hubs—more than 80 financial gas swaps and options, more than 20 electricity swaps and more than 10 physical gas transport (location) swaps. NGX said an average 2,700 contracts are traded each month on its platform.

Comments should be submitted by Sept. 17 and will be posted at the commission's website, the CFTC said.

Contact Nick Snow at [email protected]