CHICAGO – The North American Energy Credit and Clearing, the Clearing Corporation and Intercontinental Exchange announced Wednesday that they have launched a physical clearing service for the energy markets.
Yesterday, for the first time, a cleared power contract traded on June 3 was successfully delivered into ERCOT, the power transmission hub in Texas. The trade was executed using ICE’s electronic platform and transmitted to NECC to be cleared, using a solution that combines CCorp’s clearing technology and processing services with NECC settlement and scheduling methodology.
“This is an important step forward for the industry because we now have a clearing solution for physical energy that can provide seamless credit protection through delivery,” said Tricia Harrod, chairman of the advisory committee for NECC. “As new products are introduced by NECC, we believe this will make a positive difference for us and for energy markets as a whole.”