North American Energy Credit and Clearing (NECC) has hammered out a deal with investment banker Credit Suisse, which will give the Swiss-based banker an equity position in the clearing hub and provide credit enhancement tools for NECC customers.
The investment is being made by the Credit Suisse Next II Fund. Financial details were not disclosed.
NECC, privately held and based in Chicago, offers its services through the IntercontinentalExchange trading platform and voice brokers. Credit and clearing services are offered for power products in Texas and California, and for natural gas traded at Henry Hub, PG&E Citygate, Panhandle Eastern, TCO Pool and Columbia Gulf Onshore. To date, NECC said it has entered into about 600 transactions valued at more than $100 million. Its customer base includes traders, utilities, banks, merchant power plants and gas suppliers.
NECC Chairman George Sladoje, a former executive vice president at the Chicago Board of Trade, said the partnership with Credit Suisse "will enhance our company's ability to expand our reach in the physical energy markets. We believe we offer solid benefits to all energy trading organizations in that we provide access to fully secured transactions and maximum collateral efficiency."
Credit Suisse's Philip Vasan, the global head of Prime Services, said the Swiss-based banker's clients will gain "the ability to efficiently trade in the physical commodity markets."
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