Under the terms of the agreement, NGX’s Canadian physical crude products will be offered for trading through ICE’s electronic trading platform and NGX will provide clearing services for the new physical crude contracts that will be traded on ICE.
ICE and NGX expect to launch the combined offering in the first quarter of 2011.
In December, ICE launched financial products against TMX Group’s Canadian crude indices, a comprehensive gauge of Canadian crude pricing.
TMX Group entered the physical crude space in 2009 with the acquisition of NetThruPut (NTP), a North American crude oil exchange and clearing facility, whose crude oil products will now transact through NGX. NGX operates North America’s clearing house for physical natural gas.
TMX Group CEO Tom Kloet said the market participants have responded positively to the existing NGX-ICE alliance by continuing to post record volumes in the areas we serve together.
ICE chairman and CEO Jeffrey Sprecher said that this agreement builds on the success of partnership with NGX in the North American physical gas and power markets by creating risk management opportunities and capital efficiencies for oil market participants.
