Just one year after announcing its support of the ConfirmHub standard -- the energy and environmental industry initiative to provide a central, standardized platform for transaction confirmation delivery -- Nymex Holdings Inc., the parent company of the New York Mercantile Exchange Inc., has joined interdealer brokers GFI, ICAP Energy and Tullett Prebon as a 25% stakeholder in ConfirmHub LLC, it said Tuesday.
Nymex said the collaboration among the members in a technology initiative is an "industry first" and represents a "significant commitment" to market transparency and efficiency.
"Nymex is proud to be a member of ConfirmHub," said Nymex Chairman Richard Schaeffer. "We believe that ConfirmHub's standardized electronic confirmation will provide significant advantages to users of Nymex and its off-exchange brokerage services."
ConfirmHub is a web-based confirmation system offering a range of electronic management capabilities, standardized formatting and fully electronic trade matching. By connecting to ConfirmHub users may access all of their trade confirmations from the world's energy brokers and the world's largest energy exchange through an interface enabled to provide straight-through processing. ConfirmHub said it also accepts submission of confirmations by users, regardless of origin, eliminating the need for fax or email confirmation delivery. The basic services of ConfirmHub are free.
"Nymex participation is an exciting step in the growth of the ConfirmHub," said Pat McKinnon, executive director of ConfirmHub. "This is a one-of-a-kind alliance and an industry first. The addition of the Nymex as a member means that ConfirmHub users now receive vastly greater value from connecting to the service."
Last June Nymex signed a letter of intent to join Amerex, GFI Group, ICAP, Tullett Prebon, TFS Energy and Spectron in support of the ConfirmHub standard (see NGI, June 11, 2007).
Founded in 2004, ConfirmHub LLC said the current market environment of increased volatility, higher volumes and lower profit margins "make it imperative" that firms focus on operating efficiencies. The ConfirmHub offers a single interface through which energy market participants can confirm their transactions with the three leading brokers in the space -- Amerex, ICAP and Tullett Prebon. Technology provider GlobalView Software said its MarketView product provides the technology framework around which the ConfirmHub is built.
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