March 21, 2013

CFTC Issues Amended Registration Order for Natural Gas Exchange Inc.

Washington, DC — On March 20, 2013, the Commodity Futures Trading Commission issued an amended order of registration as a derivatives clearing organization (“DCO”) to the Natural Gas Exchange Inc. (“NGX”). NGX, a registered DCO since 2008, had requested that the Commission expand the scope of products it is authorized to clear and permit it to continue using an accrual accounting methodology for daily settlement. The amended order of registration permits NGX, in its capacity as a DCO, to clear (i) physically delivered or financially settled contracts (futures or swaps) based on energy products that could qualify as exempt commodities traded on or subject to the rules of a registered foreign board of trade; and (ii) physically delivered or financially settled swaps based on energy products that could qualify as exempt commodities and which are traded bilaterally or on or subject to the rules of a designated contract market or a registered swap execution facility. Under its amended order of registration, NGX is permitted to continue using an accrual accounting methodology to calculate settlement of variation adjustments to collateral, rather than using a daily payment and collection model. The amended order of registration as a DCO supersedes the original order of registration that had been issued to NGX on December 12, 2008.

Last Updated: March 21, 2013