This quarter, the New York Mercantile Exchange (Nymex) plans to offer clearing services for over-the-counter (OTC) trades in "an expansive form." Though Nymex decided to enter this arena prior to the bankruptcy of Enron Corp., the exchange's president, J. Robert Collins Jr., notes that Nymex's new services can help fill the void left by Enron's collapse. "This has presented us with opportunities," Collins says. "We strive to fill that void." The Nymex board decided in late October to offer credit intermediation through clearing services and trading tools for the OTC gas market. The plan includes the introduction of exchange of futures for swap (EFS) transactions and large order execution to the gas futures market, along with electronic trading of cleared gas swaps and basis contracts. In addition, the exchange will introduce a cleared Henry Hub gas swaps contract, providing the marketplace with direct clearing on the energy swaps contract. As part of this move, the exchange will clear OTC-executed transactions through its EFS mechanism. "Combining these trading vehicles with our Henry Hub futures contract will offer market participants the advantages of these instruments in conjunction with one of the most liquid commodity markets in the world and provide greater stability to the market as a whole," Collins says. To help facilitate this process, Nymex purchased the assets of Confirmation Clearing Corp., a Houston-based start-up that provides software to confirm OTC energy transactions, in mid-December. Traditionally, the trade confirmation process for OTC deals was handled mostly by fax and telephone. The software can help prevent misunderstandings, he explains. The exchange plans to make this software available as part of its initiative to service the OTC trading community. "In the next few months, we plan to extensively broaden the products and services available to this segment of the trading community and truly make the New York Mercantile Exchange the one-stop shop for the entire energy industry," Collins says. -Jodi Wetuski
Recommended Reading
Permian Resources Closes $820MM Bolt-on of Oxy’s Delaware Assets
2024-09-17 - The Permian Resources acquisition includes about 29,500 net acres, 9,900 net royalty acres and average production of 15,000 boe/d from Occidental Petroleum’s assets in Reeves County, Texas.
Seadrill to Adopt Oil States’ Offshore MPD Technology
2024-09-17 - As part of their collaboration, Seadrill will be adopting Oil States International’s managed pressure drilling integrated riser joints in its offshore drilling operations.
E&P Highlights: Sept. 16, 2024
2024-09-16 - Here’s a roundup of the latest E&P headlines, with an update on Hurricane Francine and a major contract between Saipem and QatarEnergy.
Chevron Pushing Longer Laterals in Argentina’s Vaca Muerta Shale
2024-09-13 - Chevron Corp., already drilling nearly 2.8-mile laterals at its Loma Campana Field in Argentina, wants to drill even longer horizontals, an executive told Hart Energy.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-09-13 - The oil and gas rig count rose by eight in the week to Sept. 13 to 590, returning to mid-June levels. The increase was the biggest since the week to Sept. 15, 2023.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.