- DAILY GPI
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Enymex Basis Swaps to Be Based on NGI Indexes
Two basis swap contracts based on NGI's bidweek indexes at Chicago and the Southern California border were among a number of energy products approved last week for listing on enymex, the New York Mercantile Exchange's Internet-based trading system. Nymex expects to launch the new system during the second quarter of 2001.
"These products were designed to replicate the most actively traded over-the-counter energy instruments," said Exchange Chairman Daniel Rappaport, "introducing the added benefits of clearing services; a neutral, centralized marketplace; and a highly sophisticated technological platform. While there may be additional products developed for introduction at launch, including more internationally based contracts, and there will certainly be more shortly thereafter, these contracts were selected as natural adjuncts to our established markets because of their close relationships to these liquid benchmarks."
Two of the products are basis swap contracts based on the differential between the exchange Henry Hub natural gas futures price and the Natural Gas Intelligence quoted index prices for Chicago City Gate and the Southern California border. Terms of the new instruments include the following: