OverviewListed products settle either financially in cash or with physical delivery of product at a designated pre-defined delivery point. Functionally, cleared transactions are executed on the Commodity Exchange in the same manner as a bilateral transaction. Additionally, block trades that are conducted off-exchange can also be cleared through the ChemConnect system for clearing participants.
Current cleared products are as follows, with additional products to be added as markets develop:
| Product | Settlement | Delivery Location Basis | Settlement Price for Margining & Final Settlement |
|---|---|---|---|
| Ethane Forward | Physical Delivery | Enterprise Mont Belvieu, TX |
ChemConnect Daily Settlement Price |
| Ethane Swap | Financial | Enterprise Mont Belvieu, TX |
ChemConnect Daily Settlement Price |
| Propane Forward | Physical Delivery | TET Mont Belvieu, TX |
ChemConnect Daily Settlement Price |
| Propane Swap | Financial | TET Mont Belvieu, TX |
ChemConnect Daily Settlement Price |
Clearing participants must have an account in good standing with an approved FCM and separately agree to the terms and conditions of the ChemConnect Clearing Policies and the The Clearing Corporation Rules.
Margin Requirements
The Clearing Corporation sets margin requirements for cleared transactions conducted through ChemConnect. Click here for current margin rates.
Clearing Firms
Following are the current clearing firms set up to clear OTC trades on the Commodity Exchange:
- Goldman Sachs
- Man Financial
- Prudential Securities
More companies are in the process of being added; if you have a specific clearing firm you would like to use to clear your trades, please contact us.
For additional information about clearing, contact us at 713-470-2455 or email clearinginfo@chemconnect.com.