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ENERGY: Calgary-based NGX poised for global role in ICE, TXS tie-up
        (AlbertaIndex, March 28) --- Calgary-based Natural Gas Exchange Inc (NGX) will have a link to the world energy markets with the tie-up between parent TSX Group and the global giant IntercontintenalExchange (ICE) Inc. NGX is the TSX’s clearinghouse subsidiary for physical settlement of North American natural gas and Canadian electricity contracts.

        TSX and ICE said they have formed a “transformative” technology and clearing alliance for the North American natural gas and Canadian power markets. The alliance brings together the respective strengths of NGX, Canada’s leading energy exchange and North America’s leading physical clearing and settlement facility, and ICE, the world’s leading electronic energy marketplace and soft commodities exchange.
       

Under the arrangement, the cleared and bilateral markets for North American physical natural gas and Canadian electricity operated by NGX and ICE will be offered together on ICE’s global electronic commodities trading platform. In turn, NGX will serve as the clearinghouse for these products. This will complement the clearing ICE offers in its highly liquid over-the-counter markets for financial contracts. NGX will also use the ICEBlock(sm) system to electronically accept for clearing off-exchange transactions in financial gas and other energy products.
        NGX’s proven clearing and settlement model has achieved unparalleled success in facilitating physical energy transactions, giving Canada exceptional liquidity in its physical gas markets. NGX has enabled almost US$300 billion of physical gas transactions since its inception in 1994. In 2006, more than 8.1 trillion cubic feet of gas traded on NGX.
        ICE said that thousands of market participants worldwide rely on the liquidity, speed and reliability of its Internet-accessible trading platform. Hundreds of products are traded daily on ICE’s high performance platform, which operates seven days a week, 23 hours each day. In addition, ICE offers the most liquid, cleared natural gas and power swaps markets in North America.
        “This alliance will transform and grow the physical energy markets in North America,” said NGX President Peter Krenkel. “We are combining the complementary, proven solutions of two established market leaders, and we’ll be starting with unparalleled market penetration. Combining our physical and financial markets on a single clearing-supported technology platform will provide NGX and ICE customers with greater execution opportunities, together with a more efficient desktop and back office.”
        “Our agreement with NGX marks the first time that a suite of physical energy products will be offered in conjunction with the ability to clear these physical contracts on the ICE platform,” said ICE Chairman and CEO Jeffrey C. Sprecher. “We are pleased to round out our offering in partnering with the clear leader in the Canadian energy markets and we see many opportunities for growth together.
        “Today, ICE offers the broadest connectivity and most sophisticated technology platform for energy and commodity markets. We introduced our innovative financial clearing solution for energy products in 2002, and NGX introduced physical clearing over a decade ago. In that time, customers have benefited from the removal of counterparty credit risk in bilateral transactions, and the liquidity that this brings by expanding trading opportunities.”
        TSX CEO Richard Nesbitt said: “Since acquiring NGX in 2004, TSX has demonstrated a commitment to supporting NGX’s growth beyond Canada, as we expand our own international footprint in the rapidly expanding resources sector. This alliance marks a significant step along that path. There can be no better partner than ICE, which has established the world’s leading electronic energy trading platform and with whom we share a common philosophy on how to deliver a superior product.
        “Each party pursued this alliance in the context of a long-term strategy and selected the other as its ideal partner. Over the past year, we have taken time to carefully plan and leverage the respective strengths of NGX and ICE in a way that will proactively support the evolution of the market.”
        TSX Group operates Canada’s two national stock exchanges, Toronto Stock Exchange serving the senior equity market and TSX Venture Exchange serving the public venture equity market, Natural Gas Exchange (NGX), a leading North American exchange for the trading and clearing of natural gas and electricity contracts and Shorcan Brokers Limited, the country's first fixed income interdealer broker.
        IntercontinentalExchange operates the leading global, electronic marketplace for trading both futures and OTC energy contracts and the leading soft commodity exchange. ICE’s markets offer access to a range of contracts based on crude oil and refined products, natural gas, power and emissions, as well as soft commodities including cocoa, coffee, cotton, ethanol, orange juice, wood pulp and sugar, in addition to currency and index futures and options.
        ICE® conducts its energy futures markets through its U.K. regulated London-based subsidiary, ICE Futures, Europe’s leading energy exchange. ICE Futures offers liquid markets in the world’s leading oil benchmarks, Brent Crude futures and West Texas Intermediate (WTI) Crude futures, trading nearly half of the world’s global crude futures by volume of commodity traded.
ICE conducts its soft commodity futures and options markets through its U.S. regulated subsidiary, the New York Board of Trade®.
        Headquartered in Atlanta, ICE also has offices in Calgary, Chicago, Houston, London, New York and Singapore.



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