ChemConnect to provide GCC clearing, settlement services

31 March 2003 14:20  [Source: ICIS news]

HOUSTON (CNI)--Online chemical marketplace ChemConnect said Monday it has arranged with Guaranty Clearing Corp (GCC) of Chicago, Illinois to offer clearing and settlement services for natural gas liquids (NGL) transactions.

Houston-based ChemConnect said that beginning in third quarter this year companies concluding a variety of NGL contracts via ChemConnect will have the option to clear those transactions via GCC, a wholly owned subsidiary of the Board of Trade Clearing Corp.

ChemConnect said in a statement that through the GCC facility, "GCC will act as the seller to every clearing firm buyer and the buyer to every clearing firm seller on ChemConnect."

As a result, said the e-commerce trading site, "ChemConnect members will achieve greater financial certainty, mitigating industry concerns about counterparty credit risks that have resulted from the combination of an economic downturn and uncertainties about forward trading liquidity in the energy market."

The company said GCC services will involve forwards, swaps and options contracts with an initial focus on ethane and propane.

(CNI's parent company, Reed Elsevier, holds an equity stake in ChemConnect.)

By: Joe Kamalick
+1 713 525 2653

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