SunGard Futures Systems, an operating unit of SunGard, has announced today that its GMI system for derivatives processing and accounting has been enhanced to process and clear energy contracts on the International Petroleum Exchange (IPE), the European Energy Derivatives Exchange (ENDEX), the UK Power Exchange (UKPX), and LCH.Clearnet’s (LCH.CN) Enclear OTC Energy Services, which clears bilateral transactions.
“As the energy market becomes increasingly accessible, liquid and secure, many of our customers are looking to aggregate and hedge their risks across markets, using one back-office system to help make the process more efficient and cost-effective,” said Steve Auerbach, president of SunGard’s GMI business unit. “GMI’s latest enhancements help customers to efficiently clear complex energy and electricity contracts and reduce manual processes, while also serving as their central processing platform for all other listed derivatives and over-the-counter markets in which they participate.”
In June 2004, ABN AMRO announced its centralized clearing initiative across six natural gas and power markets, for which SunGard’s GMI will be the clearing platform to deliver a straight through process and allow ABN AMRO’s clients to use a single provider to clear contracts across multiple exchanges. ABN AMRO’s initiative addresses the current drive in the energy industry to mitigate risk and improve transparency through substitution of a central counterparty.
SunGard plans to expand GMI’s energy offering by delivering capabilities for the European Energy Exchange (EEX) in Germany, Powernext in France, and Nord Pool in Scandinavia by July 2005.