The Alliance
The New York Mercantile Exchange, the world's largest physical commodity exchange, and LCH.Clearnet, the leading independent central counterparty group in Europe, have aligned to better serve the energy marketplace. The agreement between NYMEX and LCH.Clearnet will offer to market participants two full product slates – one that clears at the NYMEX clearinghouse in New York and one that clears at LCH.Clearnet in London. Margin and other capital efficiencies will benefit all NYMEX and LCH.Clearnet customers.What does this mean for customers?
Now, customers will be able to choose from two slates of energy contracts - one which clears at NYMEX and the other at LCH.Clearnet. Both product slates will be available on one screen and customers will achieve capital efficiencies across both clearinghouses.Once trades have been submitted and matched, they will automatically be routed to clear at either NYMEX or LCH.Clearnet depending upon the product.
Market participants will execute their trades through various Independent Software Vendors, which already provide access to CME Globex as well as industry standard NYMEX ClearPort.
What does this mean for existing LCH.Clearnet members?
This new energy product offering by NYMEX will provide LCH.Clearnet customers the ability to clear energy products listed by NYMEX through LCH.Clearnet.Further, the relationship between NYMEX and LCH.Clearnet will give market participants the ability to realize margin and other capital efficiencies.