News Release

CME Group Announces Exclusive Licensing of Net Energy Daily Index for Western Canadian Select Heavy Crude Oil

Tue Mar 30 2010

CHICAGO, March 30, 2010 – CME Group, the world’s leading and most diverse derivatives marketplace, today announced an exclusive licensing agreement for the Net Energy Canadian Daily Index for Western Canadian Select Heavy Crude Oil.  CME Group plans to offer cash-settled cleared swaps on the New York trading floor and through CME ClearPort®, a set of flexible clearing services open to over-the-counter (OTC) market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes.  Trading and clearing is scheduled to begin in the second quarter of 2010.These contracts will be listed by NYMEX and subject to the rules and regulations of NYMEX and CME. 

 

Calgary-based Net Energy Inc. provides daily settlement prices for spot and forward energy contracts and compiles, maintains and publishes indexes comprised of energy settlement prices. 

 

“CME Group recognizes the need for exchange-cleared contracts in the fast-growing Canadian energy marketplace,” said Joe Raia, CME Group managing director of energy products and services.  “We will offer our customers the ability to trade our entire crude oil slate, including our global WTI benchmark contract, against the most actively traded Canadian crude contract. The agreement also paves the way for providing cross margining opportunities that will enable customers to take advantage of the capital efficiencies sought in today’s energy marketplace.” 

 

“We are very pleased to have finalized this innovative agreement with CME Group,” said Tim Gunn, Chief Executive Officer of Net Energy Inc.  “The Net Energy customer base will now have the ability to take advantage of the size and scope of the CME Clearing House to help mitigate counterparty risk for trading the Canadian crude oil contract.   This contract is exactly what many of our customers have been asking for as it introduces flexibility in their risk management programs and added liquidity to the marketplace.

 

About CME Group, Inc.

As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate.   CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago.  CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®.   These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets. 

 

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago.  NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc.  All other trademarks are the property of their respective owners.  Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.

 

About Net Energy Inc.

                Net Energy handles a greater volume of crude oil transactions than any other brokerage service in Canada. Our product line covers the full spectrum of crude oil streams in Western Canada and we serve all the major producers, refiners and crude oil trading companies active in this market. Our innovative and sophisticated Internet based trading screens offer the best of both worlds in respect to market visibility and brokered transactions. 

 

The Net Energy indexes provide neutral third party valuations for independent audit and price settlement procedures. They are rapidly becoming the industry benchmark with respect to valuation procedures and are used by the Alberta government in their Royalty Pricing formulae (Bitumen Valuation Methodology). Our historical data is also widely used by our clients as an analytical tool and is available along with other statistical information on the Net Energy News Aggregator (NENA). Further information on Net Energy Inc. can be found at our website www.ne2.ca

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