IntercontinentalExchange, the Atlanta-based over-the-counter energy market, entered a technology and clearing alliance with Canadas Natural Gas Exchange. NGX, a subsidiary of Toronto Stock Exchange parent TSX Group, is a clearing and settlement facility for the physical delivery of natural gas and Canadian electricity. ICE will trade NGXs gas and electricity contracts on its platform, while NGX will clear those trades.
We recognized there is a demand for clearing in physical markets. NGX has the right model for the physical market, ICE Chief Executive Jeffrey Sprecher told analysts today in a conference call.