New Customer Sign-Up

New Customer Sign-up Overview

 

Thank you for your interest in clearing with NGX. Below you will find a summary of requirements and action items to provide which will allow you to transact with NGX. Should you have any questions throughout the sign up process, please contact your NGX Marketing or Clearing Representative.

In order to become a Contracting Party with NGX, please read the NGX Signup guide. Below is a quick overview of the Sign Up process:

  • Meet the Minimum Qualification Requirements.
  • Complete the NGX Application form either through web for or email to signup@ngx.com
  • After approval from the NGX membership committee, review and execute the NGX Contracting Party’s Agreement (“CPA”)
  • Complete the NGX Contracting Party Administration Form (“CPAF”)
  • Execute the ICE Participants Agreement
  • Arrange to provide collateral pursuant to the terms and conditions of Schedule C of the CPA
  • Enable NGX clearing on the ICE Exchange
  •  

    In order to become a Contracting Party with NGX the following steps must be completed:

     

    • Minimum Requirements

      Entity must satisfy and confirm the following requirements:

      A net worth exceeding CAD $5,000,000
      or
      Total tangible assets exceeding CAD $25,000,000

      Please refer to the Sign Up Guide for complete details.

      The most recent audited or unaudited year-end financial statements of the trading entity must be submitted to NGX in order to be received by the Membership Committee. The financial statements ca be submitted as an attachment with the NGX Sign-Up from or by email to signup@ngx.com

      ** If financial statements are not available for the trading entity, financial statements from a parent company will suffice as long as the trading entity is majority owned by the parent company. To confirm ownership, NGX will require an organizational chart or a letter from a Corporate Secretary clearly showing this relationship. **

    • The Application form is a standardized questionnaire that requests a variety of information about a company, its affiliates (if applicable), and certain of its representatives.

      Each applicant must submit to NGX a completed Application form.

      The NGX Application form can be downloaded here:

      NGX Application Form (PDF)

      Once the form is completed it can be submitted to NGX by attaching the form to the NGX Sign-Up Form or through email to signup@ngx.com.

      The questions on the Application form include but are not limited to:

      • a list of the officers, directors, and if applicable, principals of the applicant
      • past or current Contracting Party status
      • a list of the regulatory authorities which have authority with respect to the applicant
      • past or current disciplinary action imposed on the applicant or certain of its representatives by regulatory authorities

      ** The Application Form and related information will be considered confidential by NGX **

    • NGX utilizes a standardized legal agreement with all the participating firms that transact through the Exchange.

      The NGX Contracting Party’s Agreement (“CPA”), outlines the terms and conditions for conducting business with NGX.

      The CPA can be downloaded here (PDF)

      Both the trading and the clearing components of NGX are governed by the provisions of the CPA. The agreement has been executed by companies that comprise a cross-section of the North American energy industry, including producers, electricity generators, storage facility operators, industrial consumers, utilities, pipelines, aggregators, marketing firms, hedge funds and financial institutions.

    • Contracting Party’s Admin Form

      The Contracting Party Administration Form (“CPAF”) is to be completed in full by the designated Administrator as indicated on the CPA execution pages.

      The Contracting Party Administration Form can be
      downloaded here (Excel)

      Once the form is completed it can be submitted to NGX by attaching the form to the NGX Sign-Up Form or through email to signup@ngx.com.

      The Contracting Party Administration Form provides NGX with various contact information, pipeline information for desired trading locations, as well as other required information.

      ** The Contracting Party Administration Form and related information will be considered confidential by NGX **

    • All products that are cleared by NGX are traded on the ICE platform.

      All Contracting Parties must also execute the ICE Participants Agreement (“PA”) prior to being enabled to clear with NGX.

      A copy of the PA and execution pages can be obtained from the ICE help desk:

      Email: icehelpdesk@theice.com

      Phone: 770- 738-2101

      ice_logo_whitebkg

      Natural Gas Exchange (“NGX”) and the Intercontinental Exchange, Inc. (“ICE”) have formed a transformative technology and clearing alliance to bring together the respective strengths of NGX, Canada’s leading energy exchange and North America’s leading physical clearing and settlement facility, and ICE, the world’s leading electronic energy marketplace and soft commodities exchange.

      This relationship allows the cleared and bilateral markets operated by NGX to be offered on ICE’s electronic commodities trading platform.

    • NGX’s risk management policy requires that each Contracting Party post sufficient collateral to cover its margin requirement.

      To begin clearing with NGX, collateral deposits may take the form of:

      A letter of Credit (“LC”)

      • Issued by a Bank that is acceptable to NGX (a bank with a rating of A or better and subject to NGX’s discretion).
      • LC must be issued using NGX’s standard format.

      or/and

      Cash

      • Cash can be sent to NGX using the wire instructions.
      • Held in an interest bearing account

      and (once trading begins)

      Previous month account payable by NGX to the Contracting Party

      • Cash can be sent to NGX using the wire instructions.
      • Provided that such previous month account payable will only constitute collateral until the 20th day of the settlement month for physical contracts, and the 1st day of the settlement month for financial contracts.

      A current month account payable by NGX to the Contracting Party.

      A positive variation margin amount (i.e. in the money position)

      Margin requirement are calculated pursuant to the terms of the CPA. Please contact clearing@ngx.com to determine an appropriate amount of collateral to deposit with NGX.

      ** It is important to note that collateral is held to support a specific Contracting Party’s traded positions and can only be used to remedy a performance failure by the Contracting Party itself. **

    • All products that are cleared by NGX are traded on the ICE platform

      Once the Contracting Party has executed the PA, the Contracting Party would require an ICE clearing account to be set up.

      Please follow the steps outlined to set up the ICE Clearing Account:

      1. Request a Clearing Account

      (Must be completed by Super User or Risk Manager access on ICE)
      Log into ICE with user ID and request a Clearing Account from Natural Gas Exchange

      2. Associate Traders to Clearing Account

      (Must be completed by Super User or Risk Manager access on ICE)
      Associate traders to Clearing Account from NGX called “ALL NGX”.

      3. Associate Portfolios with NGX

      (Must be completed by each trader)
      Traders can now associate their portfolios with NGX.

      The ICE Clearing Account Setup outlines the process to request and set up a clearing account with NGX, through ICE, which is required to clear with NGX.

      ** If you have any issues or questions with respect to setting up your ICE account please contact ICE directly at 770-738-2101 or by email at icehelpdesk@theice.com **

    • SIGN UP FORM

      • Company Details

      • Full Legal Name
      • Authorized Representative
      • Email of Authorized Representative


      • Incorporation Details

      • Include the managing partner if applicable.
      • Jurisdiction of which incorporated
      • Certificate of Incorporation


      • Upload Attachments (Optional)

      • The NGX Application Form and NGX Contracting Party Admin Form are found on the previous tabs.
        Once completed, you have the option of attaching the forms via the links below, or through email to signup@ngx.com
      • Company Financials
      • NGX Application Form
      • NGX Contracting Party Admin Form
      • Once the Sign-Up form has been completed and submitted, the NGX Membership Committee will review the application. Following the approval of the application, the CPA execution pages will then be sent to the Contracting Party to complete the process.

       

      NGX WIRE TRANSFER FORM

      The NGX Wire Transfer Form is to be completed once membership has been approved.

      The NGX Wire Transfer Form can be
      downloaded here (pdf)

      Once the form is completed it can be submitted through email to settlement@ngx.com.