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May 2, 2013 /CNW/ - 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
About TMX Group (TSX:X)
TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Alpha Group, The Canadian Depository for Securities,
Montreal Exchange, Canadian Derivatives Clearing Corporation, Natural Gas Exchange, BOX Options Exchange, Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in
Toronto and operates offices across
Vancouver), in key U.S. markets (
Chicago) as well as in
Sydney. For more information about TMX Group, visit our website at
www.tmx.com. Follow TMX Group on Twitter at
SOURCE TMX Group Inc.