Guaranty Clearing Corporation and ChemConnect Announce Clearing and Settlement Services.Business Editors/Petroleum/Chemical Writers CHICAGO & HOUSTON--(BUSINESS WIRE)--March 31, 2003 Ethane ethane (ĕth`ān), CH3CH3, gaseous hydrocarbon. It is a continuous-chain alkane. As a constituent of natural gas, it is used for fuel. It can be prepared by cracking and fractional distillation of petroleum. , Propane First Products to be Cleared; Services Open New Business Opportunities for ChemConnect Members at Reduced Risk Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Clearing Corporation ("GCC GCC: see Gulf Cooperation Council. (compiler, programming) GCC - The GNU Compiler Collection, which currently contains front ends for C, C++, Objective-C, Fortran, Java, and Ada, as well as libraries for these languages (libstdc++, libgcj, etc). "), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Board of Trade Clearing Corporation (the "Clearing Corporation"), and ChemConnect, Inc. a leader in helping customers optimize their purchasing and sales processes A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. for feedstocks, chemicals, plastics, and related products, announced today that GCC will offer clearing and settlement services for a variety of contracts transacted on ChemConnect's natural gas liquids (NGLs) Commodity Markets Platform, Chalkboard. These services will involve forwards, swaps, and options contracts, with an initial focus on ethane and propane. Effective this summer, companies will have the option to clear certain transactions via GCC, through the seamless integration An addition of a new application, routine or device that works smoothly with the existing system. It implies that the new feature or program can be installed and used without problems. Contrast with "transparent," which implies that there is no discernible change after installation. of the two networks and the participation of GCC clearing firms. GCC will act as the seller to every clearing firm buyer and the buyer to every clearing firm seller on ChemConnect. As a result, ChemConnect members will achieve greater financial certainty, mitigating industry concerns about counterparty credit risk that have resulted from the combination of an economic downturn and uncertainties about forward trading liquidity in the energy market. Koch Hydrocarbon LP, which markets and trades gas liquids and olefins worldwide, is an active member of the ChemConnect trading community. "ChemConnect is the most trusted and liquid trading platform for ethane, propane, and other NGLs," said Mark Dobbins, senior vice president of trading for Koch Hydrocarbon. "We see this agreement between ChemConnect and Guaranty Clearing Corporation as a major step to enhancing overall transactional integrity. We believe these services will allow market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. to manage financial risk in the liquids markets as effectively as is done in the most established of commodity markets, such as oil, natural gas and metals." "ChemConnect has established itself as a leading over-the-counter marketplace for buyers and sellers of chemicals, plastics, and natural gas liquid products," said Michael C. Dawley, Chairman of the Clearing Corporation and GCC. "Clearing for ChemConnect's natural gas liquid products presents a significant opportunity for the Guaranty Clearing Corporation to make an impact in the petrochemical industry. These products are also a natural fit with our existing clearing operations in the energy and metals markets." "ChemConnect Members rely on us to help them expand their network of trusted trading partners," said John K. Robinson, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , ChemConnect. "Working with a market leader like Guaranty Clearing Corporation to clear NGL NGL - A dialect of IGL. trades, we are providing a seamless way for companies to streamline existing business and pursue new opportunities. As liquidity in other products continues to evolve, we fully expect that this relationship will be a critical part of ChemConnect's growing risk management offerings." About Guaranty Clearing Corporation Guaranty Clearing Corporation, based in Chicago, was established in 2002 and is registered with the Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC), the federal regulatory agency for futures trading, was established by the Commodity Futures Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C.A. 4a), approved October 23, 1974. (CFTC CFTC See: Commodity Futures Trading Commission CFTC See Commodity Futures Trading Commission (CFTC). ) as a Derivatives Clearing Organization (DCO DCO Demande Chimique En Oxygène (French) DCO Digitally Controlled Oscillator DCO District Coordination Officer (Pakistan) DCO Defence Community Organisation (Australia) ). GCC is a wholly owned subsidiary of the Board of Trade Clearing Corporation, which provides GCC with the proven systems, processes and infrastructure required to serve global, 24-hour marketplaces with unique contract attributes. This flexible model allows GCC to offer clearing and settlement services to a wide variety of contract markets, derivatives transaction execution facilities, and OTC markets. In addition to ChemConnect, GCC provides clearing and/or processing services for several other marketplaces in the energy, metals and related industries. Visit www.guarantyclearing.com for more information. About ChemConnect ChemConnect is a leader in helping customers optimize their purchasing and sales processes for feedstocks, chemicals, plastics, and related products through a unique combination of market information, industry expertise, e-commerce solutions, and an active network of trading partners. More than 9,000 Member companies in multiple industries around the world can use ChemConnect's highly efficient tools and services to streamline transactions and lower costs. Visit www.chemconnect.com for more information. |
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