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NGX, ICE Form North American Technology and Physical Clearing Alliance
Date: Friday, March 30 2007
Topic:


NGX, ICE Form North American Technology and Physical Clearing Alliance

CHICAGO and CALGARY, March 28 /PRNewswire-FirstCall/ - TSX Group Inc.
(TSX: X), and IntercontinentalExchange, Inc. (NYSE: ICE) today announced
the formation of a transformative technology and clearing alliance for the
North American natural gas and Canadian power markets. The alliance brings
together the respective strengths of TSX subsidiary Natural Gas Exchange
Inc. (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.

Under the arrangement, the cleared and bilateral markets for North
American physical natural gas and Canadian electricity operated by NGX and
ICE will be offered together on ICE's leading electronic commodities
trading platform. In turn, NGX will serve as the clearinghouse for these
products. This will complement the clearing ICE offers in its highly liquid
over-the-counter markets for financial contracts. NGX will also use the
ICEBlock(sm) system to electronically accept for clearing off-exchange
transactions in financial gas and other energy products.

NGX's highly effective clearing and settlement model has achieved
unparalleled success in facilitating physical energy transactions, giving
Canada exceptional liquidity in its physical gas markets. NGX has enabled
almost $300 billion of physical gas transactions since its inception in
1994. In 2006 more than 8.1 trillion cubic feet of gas traded on NGX.
ICE maintains and develops proprietary leading-edge technology for the
global commodity markets. Thousands of market participants worldwide rely
on the liquidity, speed and reliability of ICE's Internet-accessible
trading platform. Hundreds of products are traded daily on ICE's high
performance platform, which operates seven days a week, 23 hours each day.
In addition, ICE offers the most liquid, cleared natural gas and power
swaps markets in North America.

"This alliance will transform and grow the physical energy markets in
North America," said NGX President Peter Krenkel. "We are combining the
complementary, proven solutions of two established market leaders, and
we'll be starting with unparalleled market penetration. Combining our
physical and financial markets on a single clearing-supported technology
platform will provide NGX and ICE customers with greater execution
opportunities, together with a more efficient desktop and back office."

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