ICE NGX acts as the central counterparty for all cleared transactions, acting as the buyer to every seller, and the seller to every buyer.
This provides full cycle anonymity for virtually all transactions and introduces a neutral third party that ensures performance on both sides. There is no mutualized or legal relationship amongst counterparties and all collateral provided by or for Contracting Party is segregated and used only for that Contracting Party and its Contracting Party Affiliates.
ICE NGX is committed to ensuring the security and integrity of the clearing operation and has a robust risk management plan to identify and manage risks to the ongoing operation of the clearinghouse. ICE NGX does not enter into transactions nor take positions in energy products for any reason other than to provide clearing services.
Clearing Operations & Structure
ICE NGX operates a non-mutualized, direct clearing operation, whereby all market participants clear directly without the mediation of a third party clearing member. In order to secure the clearing operation against the failure of one or more Contracting Parties, several contingencies make up ICE NGX’s clearing structure.
Margin requirements are calculated to determine the estimated cost of liquidating a Contracting Party portfolio if required in a default scenario. Margin requirements include unpaid receivables for delivered product, mark-to-market and initial margin on forward positions, as well as additional margin as deemed necessary to ensure that the clearinghouse can effectively manage a Contracting Party’s failure to perform their obligations if ever required.
In the event of a failure to perform on physical delivery, ICE NGX has the ability to backstop and provide alternate supplies or markets for physical natural gas.
In the event of a failure to perform financially, ICE NGX may draw on collateral that has been deposited by the defaulting party in support of their margin requirement. Collateral deposited by Contracting Parties may only be used to remedy a performance failure on the part of the Contracting Party who failed to perform. ICE NGX does not mutualize this performance risk across the collective group of Contracting Parties.
Guarantee Fund and Liquidity Resources
ICE NGX fully self-funds its Financial Resources, which comprises
- Guarantee Fund, default insurance provided by Export Development Canada, with USD 200 million coverage after the first loss amount of USD 15 million, plus
- ICE NGX capital, as set out in the table below (updated quarterly).
Liquidity for the guarantee fund is provided by
- a USD 200 million letter of credit issued by Royal Bank of Canada and held in trust by Royal Trust Corporation for the benefit of Contracting Parties, accessible by Contracting Parties in accordance with the Contracting Party Agreement (“CPA”)
- USD 15 million held on deposit as restricted cash to fund the first loss amount under the default insurance policy, and
- USD 30 million ICE NGX Cash
ICE NGX also maintains credit facilities and additional liquid resources to ensure that, at a minimum, all regulatory financial resources and liquidity provisions are maintained.
| Funds Available for DCO Default Waterfall: | ||
|---|---|---|
| A) Guarantee Fund | $215.0 | USD |
| B) ICE NGX Capital | $29.8 | USD |
| Total Financial Resources | $244.8 |
As of September 30, 2023
2023
| Financial Transactions Delivery Month | Daily Indexed Products Settlement Dates | 7A Index Products Delivery/Financial Month | 7A Index Products Settlement Date |
|---|---|---|---|
| Dec-22 | January 10, 2023 | Dec-22 | January 10, 2023 |
| Jan-23 | February 8, 2023 | Jan-23 | February 8, 2023 |
| Feb-23 | March 8, 2023 | Feb-23 | March 8, 2023 |
| Mar-23 | April 11, 2023 | Mar-23 | April 11, 2023 |
| Apr-23 | May 8, 2023 | Apr-23 | May 8, 2023 |
| May-23 | June 8, 2023 | May-23 | June 8, 2023 |
| Jun-23 | July 11, 2023 | Jun-23 | July 11, 2023 |
| Jul-23 | August 9, 2023 | Jul-23 | August 9, 2023 |
| Aug-23 | September 11, 2023 | Aug-23 | September 11, 2023 |
| Sep-23 | October 11, 2023 | Sep-23 | October 11, 2023 |
| Oct-23 | November 8, 2023 | Oct-23 | November 8, 2023 |
| Nov-23 | December 8, 2023 | Nov-23 | December 8, 2023 |
| Dec-24 | January 9, 2024 | Dec-24 | January 9, 2024 |
| Jan-24 | February 8, 2024 | Jan-24 | February 8, 2024 |
Physical and Financial Transactions
Settlement Dates
2023
| Financial Month | Holiday | Delivery/Financial Month | Physical Gas and Electricity Transactions Settlement Date | |
|---|---|---|---|---|
| Jan-23 | New Years Day | January 2, 2023 | Dec-22 | January 25, 2023 |
| Feb-23 | Family Day | February 20, 2023 | Jan-23 | February 27, 2023 |
| Mar-23 | Feb-23 | March 27, 2023 | ||
| Apr-23 | Good Friday | April 7, 2023 | Mar-23 | April 25, 2023 |
| May-23 | Victoria Day | May 22, 2023 | Apr-23 | May 25, 2023 |
| Jun-23 | May-23 | June 26, 2023 | ||
| Jul-23 | Canada Day | July 3, 2023 | Jun-23 | July 25, 2023 |
| Aug-23 | Civic Holiday | August 7, 2023 | Jul-23 | August 25, 2023 |
| Sep-23 | Labour Day | September 4, 2023 | Aug-23 | September 25, 2023 |
National Day for Truth and Reconciliation | October 2, 2023 | Sep-23 | October 25, 2023 | |
| Oct-23 | Thanksgiving | October 9, 2023 | Oct-23 | November 27, 2023 |
| Nov-23 | Remembrance Day | November 13, 2023 | Nov-23 | December 27, 2023 |
| Dec-23 | Christmas Day | December 25, 2023 | Dec-23 | January 25, 2024 |
Boxing Day | December 26, 2023 | Jan-24 |
NOTE: Daily Cash Settlement invoices will not be processed on weekends or holidays listed above. Payments will be deferred to the following business day.