Natural Gas Exchange Inc. (NGX), a wholly-owned subsidiary of TMX Group, today announced that its application to become registered as a foreign board of trade (FBOT) has received approval from the U.S. Commodity Futures Trading Commission (CFTC). The FBOT registration replaces NGX's exempt commercial market status, which was eliminated by the enactment of the Dodd-Frank Act.
“NGX is very pleased to have received this approval because the FBOT status ensures that we are able to continue to provide direct participation in our markets by our U.S. participants,” said Jim Oosterbaan, President, NGX.
“TMX Group welcomes this historic approval,” added Tom Kloet, CEO, TMX Group. “We are appreciative of the CFTC Commission and staff's prompt and diligent consideration of this, the first application submitted under the new Dodd Frank FBOT regime.”
The new FBOT status recognizes NGX's comparable domestic regulatory regime and oversight as it relates to trading in NGX markets, which supports efficient cross-border regulation. The change does not directly impact NGX's clients. NGX will continue to clear contracts as a Derivatives Clearing Organization.
NGX provides exchange, delivery, clearing and settlement services to over 250 energy trading customers in North America. In 2008, NGX launched an alliance with IntercontinentalExchange Inc. (ICE) whereby NGX uses ICE front-end trading technology. NGX currently offers products and clearing services at over 65 natural gas, crude oil and power locations in North America. For more information on the FBOT status and on U.S. classification of NGX products please visit www.ngx.com.