CALGARY, Alberta, November 19th, 2018 (Press Release) Enerdata, the independent energy information firm, has today announced the launch of CCI Canadian Crude Financial Futures contracts on Nasdaq Futures, Inc. (NFX).
These contracts are based on Enerdata’s Canadian Consolidated Indices (CCI), which are consolidated from trades of the underlying physical Canadian Crude market. Marex Spectron and One Exchange, leading energy brokers, will contribute execution data to the indices in real-time, independent of NFX and Enerdata.
The NFX range of Canadian crude futures contracts includes:
NWC NFX (C.C.I.) Western Canadian Select Crude Oil Basis Futures NSP NFX (C.C.I.) Canadian Synthetic Sweet Crude Oil Basis Futures NSR NFX (C.C.I.) Canadian Sour Crude Oil Basis Futures NSW NFX (C.C.I.) Canadian Light Sweet Crude Oil Basis Futures NC5 NFX (C.C.I) Canadian Condensate (C5) Basis Futures
These futures contracts are demand driven, with market participants seeking to hedge the basis risk of a significant volume of barrels not covered by traditional contracts.
Kevin Kennedy, CEO of NFX added: “Adding the CCI Futures to the NFX energy product suite expands our North American crude oil portfolio into Canada, and, combined with the low cost NFX platform, can bring significant value to the Canadian crude oil trading and hedging community.”
Ian Lowitt, CEO Marex Spectron added: “Having successfully launched CCI last year following demand from our clients, it has become an established industry benchmark for Canadian crude. Given the greater liquidity of the Enerdata indices, partnering with Nasdaq to offer futures contracts is the logical step forward.”
Richard Zarzeczny, President of Canadian Enerdata, added: “The launch of the NFX CCI Futures contracts is a significant step forward for the Canadian crude oil industry. They offer market participants with extremely competitive risk management alternatives based on credible, independent, real time price benchmarks representing a significant portion of the Canadian crude oil market.”
Perry Undseth, President of One Exchange, commented: One Exchange is excited to work with Nasdaq in delivering a new suite of products to the Canadian oil market. For some time, our clients have been asking for a solution to the fragmented benchmark for Canadian crude oil contracts. The CCI framework/methodology has addressed industry concerns by delivering a single benchmark through an independent publisher (Canadian Enerdata) who delivers the data in real-time. The launch of the NFX CCI financial contracts now allows eligible market participants to effectively hedge physical exposure against a single consolidated benchmark that is comprised of more than a single source of data.
Full Press Release
CALGARY, Alberta, October 28, 2017 (Globe and Mail)The Toronto Stock Exchange’s parent company is buying a British-based provider of software for energy traders, brokers and exchanges for $931million in a deal that shifts control over oil-and-gas trading platforms in Canada.
TMX Group Ltd. will pay $592-million in cash to buy Trayport Holdings Ltd. from Intercontinental Exchange (ICE) Inc., which also owns the New York Stock Exchange. TMX will pay for the remaining $339-million by selling Natural Gas Exchange Inc. (NGX) and oil brokerage Shorcan Energy Brokers Inc. to ICE.
Trayport is a technology platform that brings together pricing information and trading activity in commodities, including power, natural gas, coal and oil, across multiple marketplaces. It operates in 42 countries, with an emphasis on Europe. Its clients are a mix of brokers, exchanges and clearinghouses.
TMX says the deal will help it bolster its data and analytics business, pursue growth outside the Canadian market and generate a larger slice of revenue that’s recurring instead of transaction-based. The development brings new competition to an active part of the energy business used by experts who make deals to supply Canadian oil and gas to buyers across the continent. “This is a play in technology-driven solutions, but it’s also a major play in global energy markets,” said Lou Eccleston, chief executive at TMX. “Trayport is a player in the global energy market, which is going to grow.”
A subscription to Trayport gives clients access to reams of energy market data, as well as analytics tools that can be employed to better understand this data. It is also a place where different market participants can interact virtually.
Founded in 1993, Trayport has 240 employees across offices in London, New York and Singapore. During the past 12 months, Trayport has generated $99-million in revenue. By contrast, in the year through June 30, NGX and Shorcan recorded $59-million in sales.
Mr. Eccleston said TMX has its sights set on expanding the Trayport platform into new asset classes and entering new regions. The technology is flexible, so that if a new asset class in, for example, clean tech takes off, Trayport can move into that market, Mr. Eccleston said. The sale of Trayport comes months after British competition authorities ruled that ICE had to sell the business to preserve competition in the European energy-trading market. ICE, which is headquartered in Atlanta, is no stranger to Canada. It also operates ICE Futures Canada, the country’s Winnipeg-based derivatives market for agriculture.
NGX is the dominant platform for wholesale natural gas trade in Canada, providing electronic trading, clearing and data. It is best known for developing the AECO gas storage hub in southeastern Alberta into a benchmark for pricing for the fuel, which it expanded into the United States more than a decade ago. NGX also hosts electricity trading.
Shorcan Energy Brokers provides a similar platform for crude oil, such as Western Canada Select, the heavygrade crude that is frequently quoted as a benchmark. That part of the business has faced increasing competition, with the entry last year of Europe’s Marex Spectron.
In efforts to consolidate the fragmented market and avoid price discrepancies, Marex Spectron and a local player, One Exchange, have teamed up to offer a single benchmark for WCS oil prices and have invited Shorcan and another major rival, Net Energy Inc., to join the effort.
“We did not do this to sell those businesses,” said Mr. Eccleston, of NGX and Shorcan. “They weren’t up for sale. They happened to be a compelling reason for ICE to do this deal with us.” The sale of NGX and Shorcan to ICE is subject to regulatory approval, including from the Canadian Competition Bureau. If the sale doesn’t close within the next 45 days, TMX’s acquisition of Trayport can be separated from the sale of NGX and Shorcan to ICE. The price of Trayport would be then $931-million in cash, whereas NGX and Shorcan would be sold for $339-million in cash.
And if the closing doesn’t occur within 90 days, ICE can choose to back out of its purchase of NGX and Shorcan. Barclays advised TMX on the deal. Shares of TMX rose 1 per cent, or 95 cents, to $67.49 in early trading on Friday. The company’s stock has slid 6 per cent so far in 2017. TMX Group (X) Close: $67.86, up $1.36
CALGARY, Alberta, Sept 7 (Reuters) - Two Calgary energy brokers have joined forces to start a Canadian crude index that consolidates their trading data and will be published by energy information firm Enerdata, the companies said on Wednesday.
One Exchange and Marex Spectron say aggregating their indices into one will provide more clarity in the Canadian cash market, greater liquidity and more accurate benchmark pricing for trading financial contracts.
At present the Canadian crude market is served by a number of brokers offering different indices, the two largest being Net Energy and Shorcan Energy.
Industry players estimate around 80 percent of trading in the benchmark heavy Canadian grade Western Canada Select (WCS) goes through Net Energy and Shorcan.
The Canadian Crude Index Alliance (CCIA) will cover the whole spectrum of crude grades from WCS to synthetic crude and condensate, said Perry Undseth, president of One Exchange.
Undseth said the firms “believe that CCIA will provide customers with better trading and hedging opportunities by increasing liquidity and attracting new market participants in both physical and financial products.”.
The CCIA will invite other brokers to join the new index, Undseth said. Neither Net Energy or Shorcan immediately responded to requests for comment.
(Reporting by Nia Williams; editing by Grant McCool)
CALGARY, Alberta, Sept 7 (Globe and Mail) Two top commodities brokerages are teaming up in a bid to end potentially costly price discrepancies in Canadian crude markets that impact everyone from major oil producers to Alberta taxpayers.
London-based Marex Spectron and One Exchange Corp. of Calgary are launching a new Canadian crude benchmark and extending an offer to rival brokers to join a consolidated index called the Canadian Crude Index Alliance. The brokers say the move is aimed at providing better trading and hedging opportunities as well as attracting new players to a market they say is among the most fragmented in the commodities world, leading to inaccurate pricing on physical and financial trades of Canadian oil.
“We’ve been listening to the market for a long time and there’s a large segment of the market that wants this,” Perry Undseth, president of One Exchange, said in a telephone interview. “If this wasn’t something that we felt would be supported, even though we thought it was a good idea, we probably wouldn’t have proceeded as quickly as we did.” Together, the brokers say they control about one-third of the market for trades in Western Canadian Select (WCS), a blend of heavy crude and oil sands that serves as the benchmark price for the bulk of Alberta’s oil. Net Energy Inc. and Shorcan Energy Brokers, owned by TMX Group Ltd., make up the rest of the market.
Unlike the U.S. benchmark West Texas intermediate oil, prices for WCS are determined by each of the broker participants, leading to discrepancies depending on market activity.
The resulting inefficiencies could cost producers, financial players and even the Alberta government, which markets a portion of the crude it receives in lieu of royalty payments.
In a statement, Marex chief executive Ian Lowitt said the consolidated index “goes a long way to establishing an industry benchmark for Canadian crude that has greater liquidity and more accurate pricing.”
Marex, the world’s largest independent commodities brokerage, opened its Calgary office last year after hiring a trio of oil traders away from rival Shorcan. Marex and One Exchange say their consolidated indices will be available to clients this month through Canadian Enerdata Ltd., an independent priceindex publishing and forecasting company that helped establish the AECO price indices for Alberta natural gas markets in the 1990s.
We’ve been listening to the market for a long time and there’s a large segment of the market that wants this.
CALGARY, Alberta, Sept 6 (PRESS RELEASE) Enerdata, the independent energy information firm, today announced the launch of the Canadian Crude Index Alliance (CCIA), a Canadian crude benchmark that aggregates the existing index data of One Exchange and Marex Spectron, two leading energy brokers.
CCIA is a major development for the Canadian crude market, in which there are currently a variety of indices compiled by different energy brokers. The consolidation of Marex Spectron’s and One Exchange’s Canadian crude indices through Enerdata, which has pioneered many natural gas indices, is an important step to providing the market with a real-time industry benchmark.
The new indices and the underlying data will be available to clients starting in September free of charge through their broker.
“Clients have told us that they want a single suite of public indices provided by a third party at zero cost,” said Ian Lowitt, Marex Spectron’s Chief Executive Officer. “We are delighted to have executed this first step with One Exchange and Enerdata, and invite other brokers to join the index. CCIA goes a long way to establishing an industry benchmark for Canadian crude that has greater liquidity and more accurate pricing.”
Perry Undseth, President of One Exchange, commented: “We are equally excited to be working with Marex Spectron to provide a solution to the fragmented market environment and believe that CCIA will provide customers with better trading and hedging opportunities by increasing liquidity and attracting new market participants in both physical and financial products. Tying financial instruments to a broader, more comprehensive benchmark offers a significant improvement over the existing market mechanics.”
Richard Zarzeczny, President of Canadian Enerdata, added: “We welcome the opportunity to be part of the CCIA. A consolidated oil price index is in the best interests of the Canadian oil industry as a whole and Enerdata reaches out to all Canadian crude oil brokers to participate.”
Download The Index Methodology
- Ends -
For further information, please contact:
Perry Undseth One Exchange +1 403-215-5507 | PUndseth@oneexchangecorp.com
Richard Zarzeczny Canadian Enerdata +1 905-642-8167 | email@example.com
Alastair Crabbe Marex Spectron + 44 (0) 20 7650 4104 | firstname.lastname@example.org
Index/ Broking enquiries
Tarun Ajwani Marex Spectron +1 587-393-5619 | email@example.com
Perry Undseth One Exchange +1 403-215-5507 | PUndseth@oneexchangecorp.com
Richard Zarzeczny Canadian Enerdata +1 905-642-8167 | firstname.lastname@example.org
Notes to Editors:
Marex Spectron Group Limited
Marex Spectron is a leading global commodities brokerage, with significant market share of many major agricultural, metal and energy products. Headquartered in London, Marex Spectron’s extensive international network covers Europe, Asia and North American markets. State-of-the-art electronic and voice broking services facilitates all types of trading strategies. This is backed by decades of experience, with Marex Spectron placing great emphasis on intellectual knowledge and insight, alongside access to extensive data sets and the latest analytical tools.
Based in Calgary, Alberta, One Exchange Corp. (OX) is a leader in voice and electronic brokering for the North American Natural Gas and Crude Oil markets. Equipped with more than 100 years of combined experience in the energy sector, OX offers a sophisticated and comprehensive approach to your trading and hedging needs.
Canadian Enerdata Ltd. is an independent energy (natural gas, crude oil, gasoline, diesel and fuel oil) information, price index publishing and forecasting company established in 1984. Enerdata was at the forefront in the development of the Alberta ‘AECO’ natural gas price indices throughout the 1990s. Enerdata publishes the Canadian Gas Price Reporter (CGPR), Weekly Canadian Natural Gas Storage Report, Canadian Energy Trends and Natural Gas Forward Prices.
CALGARY, Alberta, Sept 5 (PRESS RELEASE) The One Exchange team would like to thank you for your outstanding support of our Flood Relief Fundraising on August 31, 2017. Because of your assistance One Exchange Corp. will be donating USD$23,000.00 to the Salvation Army.
These funds will be used by the Salvation Army to provide "relief" and "recovery" assistance. In the aftermath of Hurricane Harvey, Houston is suffering. As crews continue to rescue and assist flood victims and begin the long clean-up process, One Exchange would like to extend its sincere wishes for progress and success with their recovery efforts.
Perry Undseth President of One Exchange said “The Hurricane Relief Fundraising Day was a huge success for One Exchange. We are happy to have participated as a team in this effort and wish to thank our customers equally for their participation to this worthy cause. Contribution to the Salvation Army will provide much needed aid for the flood victims”
Lt. Col. Ron Busroe added. “Thanks for supporting The Salvation Army’s efforts! Funds raised by One Exchange will allow The Salvation Army to provide food, hydration, cleanup kits, hygiene supplies, and emotional and spiritual care to first responders and survivors,” said Lt. Col. Ron Busroe, The Salvation Army’s National Community Relations and Development Secretary. “With generous support, The Salvation Army will be here to help the millions affected by Hurricane Harvey for as long as they’re in need.”