HOUSTON, Texas, March 1, 2002 — EnergyClear Corp. (ECC) today announced that it would launch its over-the-counter energy clearinghouse in the second quarter of 2002.
Initial products cleared will be comprised of electricity and natural gas forward transactions. The announcement comes following the corporation’s formation of an interim Board of Directors, comprised of energy industry leaders.
Commenting on the launch, Jimmy Wright, spokesperson for ECC, stated, “The corporate mission is to provide institutional integrity and financial efficiency to the over-the-counter energy industry. This industry-owned clearinghouse would reduce the inherent operational and credit risk in the energy markets.
“Recent events in the energy trading and market industry highlight the need for a solution to reduce credit exposures and increase financial transparency. ECC is the solution to many of these issues. It will deliver the benefits of multilateral netting through standardization of products and margining, along with independent mark-to-market valuation.”
Though a launch date has been targeted, opportunities for membership remain open. “A central clearing counterparty is revolutionary to the OTC energy industry,” notes Wright. “However, the support and vision of our members will ensure its success.”
About EnergyClear Corp.
EnergyClear Corp. (http://www.energyclear.com) provides netting and settlement of over-the-counter energy transactions, delivering the benefits of multilateral clearing in an efficient, effective and secure manner.
The corporation is wholly owned by market participants and is a registered derivatives clearing organization with the Commodity Futures Trading Commission under the Commodity Futures Modernization Act of 2000.