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GLOSSARY
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Note: This information is provided for information purposes only and has no legal significance. Neither TSX Group Inc. nor any of its affliliated companies is responsible for any use of, or reliance on, this information. You are advised to consult the NGX Contracting Party's Agreement with respect to all terms and conditions, including definitions, that have legal relevance to your activities as a Contracting Party through NGX.
Administrator
A person or persons authorized by a Contracting Party to inform NGX of the names of employees, consultants and agents who are authorized to trade and/or clear through NGX. All individuals with ICE Administration privileges are deemed to be NGX Administrators.
AECO
The historical name of a virtual trading hub on the NGX system, located in the province of Alberta, Canada. Now known as the Nova Inventory Transfer (NIT) system operated by Trans Canada Pipelines Limited.
Ancillary Services
System support services that are used to maintain the stability of the electricity grid in Alberta. They are purchased by and deliverable to the Alberta Electric System Operator ("AESO"), which is the entity appointed under the Electric Utilities Act to perform this function.
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Basis Instruments/Basis Physical Transactions
Physical Instruments and Physical Transactions at a geographic delivery point where the Purchase Price is calculated as the sum of a fixed component determined at the time of the transaction and the Henry Futures Settlement Price for the relevant delivery period.
BBTU
A unit of measure of heat content, billions (109) of British thermal units.
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CGPR
The Canadian Gas Price Reporter, a publication by Canadian Enerdata Ltd., which publishes several NGX indices.
Collateral
Some form of financial assurance that is used against default risk.
Contracting Party’s Agreement (CPA)
NGX’s governing legal document, the contract executed by a market participant with NGX in order to become an NGX Counterparty. It contains all the rules of the exchange and clearing facility.
Contract Quantity
The total quantity of gas to be delivered or taken during the term of a Physical Transaction and is equal to the Daily Contract Quantity times the number of days in such Physical Transaction.
CPA
See Contracting Party’s Agreement.
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Daily Contract Quantity (DCQ)
The quantity of gas to be delivered or taken during each Delivery Day for a Physical Transaction.
Default
An event when a party fails to abide by the terms of a transaction or governing contract. This event may include the failure to make or take delivery of physical molecules, the failure to pay or the failure to deposit Collateral.
Delivery Day
A 24-hour period which is defined as commencing at a particular time on one day and ending at a particular time on the next day. The starting time is dependent upon the transportation systems rules and regulations at the Hub on which gas is to be delivered or taken.
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Failure to Deliver
When a seller fails to make delivery of physical molecules as defined by the transaction entered into.
Failure to Pay
When the buyer fails to make payment of any amount under an invoice.
Failure to Perform
When after the Nominations’ final designation cycle, the Hub Operator either rejects the nomination or the nomination has not been made.
FERC
The U.S. Federal Energy Regulatory Commission.
Fixed Price Instruments/Transactions
Physical Instruments/Transactions where the purchase price is determined at the time of entering into the transaction.
Fixed Price Payer
A swap transaction term, where the party which is obligated to make payments of amounts calculated by reference to a Fixed Price, Notional Quantity and calculation period.
Floating Price Payer
A swap transaction term, where the party which is obligated to make payments of amounts calculated by reference to a floating price, Notional Quantity and calculation period.
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Gas Daily
Short name for Platt's Gas Daily, a trade publication published by Platt's, a division of the McGraw Hill Companies.
Gas Day
The 24 consecutive hours beginning and ending at 9:00a.m. Central Time that gas will be delivered or received by the Counterparties to a transaction.
Gigajoule or GJ
A metric unit of energy content, equal to 1,000,000,000 (109) Joules.
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Heat Rate
A measure of generating station thermal efficiency, generally expressed in GJ per net MWh. It is computed by dividing the total GJ content of fuel burned for electric generation by the resulting net MWh generation.
Henry Futures Settlement Price
A price that includes:
(i) the settlement price on the last trading day of a monthly Henry futures contract which corresponds to the applicable delivery Month under a Physical Transaction expressed in US$ per MMBTU (to four decimal points). This price is reported in Gas Daily in the table entitled Futures NYMEX at Henry Hub under the "Settlement column", or
(ii) in the event that Gas Daily does not report a Futures NYMEX at Henry Hub settlement price, NGX will determine the Henry Futures Settlement Price based on the most comparable reported prices for the applicable delivery Month.
Hub (or Physical Market)
A specific geographic delivery point for which NGX offers Physical Instruments.
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ICE
InterContinental Exchange Inc., a leading operator of global derivatives and OTC markets. For more information, visit www.theice.com.
Index
A value published to indicate the average price of Physical Transactions at a given geographic point and period. The most commonly used indices for US points are calculated based on surveys of companies willing to report trades to the publications which publish them. All NGX indices are calculated as the weighted average price of transactions consummated on NGX's Trading System, and are published both here and by CGPR.
Index Instruments and Index Physical Transactions
Physical Instruments and Physical Transactions where the Purchase Price is calculated as the sum of a fixed component determined at the time of the transaction and the value published in the relevant index for the relevant delivery period.
Index Physical Instruments and Index Physical Transactions
All Physical Instruments and Physical Transactions where the formula for calculation of the purchase price is determined at the time of entering into a one-month spot index physical transaction and is based on the one-month spot index price.
Inside FERC
Short name for Inside FERC's Gas Market Report, published by Platts, a division of McGraw-Hill Companies.
Initial Margin Rate
An amount that is based on a statistical calculation of the possible price movement over a period of time at a given Hub. This calculation is based on historical price volatility factors and a given confidence level.
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Market
A contract tradeable at NGX, composed of a product, hub and strip.
Market Agency
An NGX service available to authorized traders, whereby an NGX Market Operator may enter, modify or delete orders on behalf of the trader based on instructions received over the telephone. For more details see the relevant page.
Market Operator
A member of the NGX Operation Team and Help Desk.
Megawatt or MW Equals one million (1,000,000) Watts.
Megawatt-hour or MWh Equals one Megawatt of electricity for one hour.
MMBtu
A unit of energy content equal to one million (1,000,000) British thermal units.
Mnemonic
A designation for a market participant's account at a given hub, used for nominating physical gas. Also known as a transport number or pooling agreement.
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NERC
Acronym for the North American Electricity Reliability Council.
NGI
Acronym for NGI's Bidweek Survey, a trade publication published on the first U.S. business day of each month by Natural Gas Intelligence Press, Inc.
NIT
The Nova Inventory Transfer System operated by Trans Canada Pipelines Limited in Alberta, Canada, a group of hubs and pipelines which form a “virtual hub” and the primary single pricing point for gas in Alberta. Commonly referred to by its historic name, “AECO”.
Nomination
The process by which a Contracting Party delivers or takes physical molecules at a Hub by notifying the Hub operator within the guidelines set out by that operator.
Nominations Report
A report generated by NGX prior to the Nomination deadline for a Physical Transaction at each physical Hub. The report is provided to each Contracting Party and contains the name of NGX as counter part to the Physical Transaction as well as the net Daily Contract Quantity.
Daily Noon Rate
The Canadian Dollar exchange rate as it compares to the U.S. Dollar, published at noon, Eastern time, every business day by the Bank of Canada.
Notional Quantity
The daily quantity of gas or electricity, which has been agreed to by NGX and the Contracting Party upon entering into a Swap Transaction. This volume forms the basis of settlement for the swap transaction and is referred to in the respective swap confirmation as the Notional Quantity.
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Over-the-Counter (OTC)
Any NGX contract that is traded via an NGX market operator rather than directly on the NGX trading platform.
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Physical Basis
See Basis Instruments /Basis Physical Transactions
Physical Instrument
A term for the on-screen tradable contract, which includes the physical location of the Hub, date range and starting date for delivery. All trades of physical instruments result in obligations to receive or deliver natural gas at the specific physical location for the designated date range.
Physical Market (or Hub)
A specific geographic delivery point for which NGX offers Physical Instruments.
Physical Settlement Date
For Physical Transactions, the effective date is the 25th day of each calendar month for deliveries and receipts of gas during the prior calendar month. If the 25th day of the calendar month falls on a day other than on a Business Day or on a recognized holiday by major Canadian and/or United States banks, then the date is determined by NGX. All Contracting Parties are notified by a posting on the NGX's Website not less than one month prior to the occurrence of that date.
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Settlement Price
Each and every Physical Instrument or swap instrument on each day, is assigned a price that is determined by the NGX. NGX, in its sole discretion, provides a reasonable estimation of the current market price using both internal and external sources for each Instrument. Prices will be determined no later than the end of every Business Day.
Spot Day
The next Gas Day.
Swap Settlement Date
For the purposes of financially settling all swap transactions, the billing date shall be the 6th Business Day of each calendar month as posted here . If the 6th Business Day falls on a day that is a recognized holiday by major Canadian and/or United States banks, then a new date will be determined by NGX and then notified to all Contracting Parties via a posting here . Notification will occur not less than one month prior to the occurrence of that date.
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Terajoule (TJ)
A metric unit of energy content. 1,000,000,000,000 (1012) Joules and is equal to 1000 GJ.
Term
The period over which the settlement is to be performed, including start date and duration.
Title Transfer
A notification for an inventory transfer is sent to a particular pipeline directing that pipeline to transfer gas between a Contracting Party's account and NGX's account or visa versa.
Transport Spread Instrument
A Physical Instrument whereby the Buyer simultaneously buys a given specification of gas at one Hub (often called the “base”) while selling the same specification at a second Hub (often called the “leg”).
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Watt
A measure of the power that produces energy at the rate of one (1) Joule per second.
WebICE
An Internet browser-based front end for transacting on the ICE Trading Platform.
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XML
Extensible Markup Language, an open standard for exchanging structured documents and data over the Internet.
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