The Clearing Corporation has implemented to support ChemConnect, Inc., the over-the-counter marketplace for buyers and sellers of chemicals, plastics, and natural gas liquid products.
Under an agreement with ChemConnect, CCorp is providing clearing and settlement services to its Commodity Markets Platform. These services initially involve forwards and swaps in propane and ethane.
Clearing participants have the option to clear certain transactions via CCorp through the integration of the two networks and the involvement of CCorp clearing participants. Under this arrangement, ChemConnect members can achieve greater financial certainty, managing financial risk in the liquids markets as effectively as is done in commodity markets such as oil, natural gas, and metals.
“As the OTC marketplace continues to expand, there is a greater emphasis on the need for efficiency and risk management expertise that we provide,” says CCorp CEO Dennis Dutterer. “ChemConnect is an example of how we can bring regulated and non-regulated markets together under a single infrastructure, affording customers the utmost in flexibility, efficiency, and risk management.”