CFTC Registers Canada's NGX as a Derivatives Clearing Organization

The US Commodity Future Trading Commission said on Dec. 18 that it issued an order six days earlier granting Natural Gas Exchange Inc. registration as a derivatives clearing organization (DCO).

The US Commodity Future Trading Commission said on Dec. 18 that it issued an order six days earlier granting Natural Gas Exchange Inc. registration as a derivatives clearing organization (DCO).

NGX is a Canadian firm which operates an electronic trading and clearing system for natural gas and other energy contracts. It is recognized as an exchange and clearing agency by the Alberta Securities Commission and is owned by TMX Group Inc., which also owns the Toronto Stock Exchange and Montreal Exchange, according to the CFTC.

It said that as a registered DCO, NGX is authorized to clear over-the-counter derivative instruments based on energy products that cold qualify as exempt commodities under Section 1(a)(14) of the Commodities Exchange Act.

Contact Nick Snow at nicks@pennwell.com

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