All market participants are required to execute the standardized Contracting Party’s Agreement (the “CPA”) with Natural Gas Exchange Inc. The CPA contains all of the contract terms necessary to allow market participants to trade, clear and settle physical, swap and option instruments with ICE NGX. The CPA provides standardized definitions, terms and conditions for electronic trading, financial and collateral requirements, performance obligations and default remedies. The CPA is amended from time to time with notification of any amendment provided directly to each market participant. All material amendments to the CPA are filed with ICE NGX’s lead regulator, the Alberta Securities Commission as well as to the Commodity Futures Trading Commission.
The CPA is structured as follows and may be downloaded here (PDF),
Blackline version available here (PDF)
2. Representations and Warranties
4. Physical Settled Futures Transactions and Physically Settled Futures Products
5. Recourse and Liability
6. Code of Conduct
8. Financially Settled Futures Products and Option Products
A – Fee Schedule
B – Mediation and Arbitration
C – Risk Management Policy
D – ICE NGX Product List
E – Natural Gas Options and Gas and Power Financially Settled Futures Transactions
F – Physically Settled Gas Futures Transactions – Canadian Delivery Points
G – Physically Settled Gas Futures Transactions – U.S. Delivery Points
H – Physically Settled Oil Futures Transactions
I – Forward (Bilateral) Transactions
J – Physically Settled Gas Futures Transactions – U.S. Delivery Points with Assigned Delivery
K – Physically Settled Power Futures Transactions – U.S. Delivery Points
Rule Filings amending the CPA can be found here.
Market participants must meet the following criteria:
Each participant must be an eligible party as specified in Article 2.3 of the CPA. Specifically it must be a corporation, partnership, organization, trust or other business entity with a net worth exceeding $5,000,000 or total tangible assets exceeding $25,000,000 as shown on its latest balance sheet, or be controlled, directly or indirectly, by one or more of any such business entities and comply with any other conditions or requirements imposed by Exchange.
ICE Agreement – In addition to the above, participants must have executed and maintained in good standing at all times a Participant’s Agreement with IntercontinentalExchange, Inc. (“ICE”). There are no incremental ICE fees for participants who wish to access ICE NGX markets.
U.S. Status – In addition to the above, market participants must be, to the extent required by U.S. law, an “eligible contract participant” with respect to any swap submitted to ICE NGX.
Physically Settled Futures Products – In order to trade physically settled futures products, market participants must meet certain requirements. Specifically, market participants must have either a title transfer, firm or interruptible agreements with the hub operator or similar ability to make or take delivery. It should be remembered that all transactions on ICE NGX are firm.
Financially Settled Futures Products and Option Instruments – Market participants that trade in natural gas or electricity financially settled futures products or option instruments are not required to hold transport capacity.