Energy trading platforms TradeSpark, Intercontinental Exchange and RedMeteor Inc. all reported recently that trading volumes on their individual platforms are heading in only one direction…up.

TradeSpark, a partnership of five U.S. producers/distributors, reported on Tuesday a 56% increase in its overall trading volume and a 90% increase in natural gas trading volumes during the first quarter 2001 over the fourth quarter 2000.

The TradeSpark exchange also announced it would begin breaking out overall product volumes and trading highlights on a quarterly basis. Since the exchange’s October 2000 launch, it has traded $30 billion (notional value) in energy products, $12 billion during the fourth quarter of 2000 and $18 billion during the first quarter of 2001 (see Daily GPI, Sept. 26, 2000). The two most traded products during the first quarter were natural gas and electricity. Traded electricity MWh increased 17% over the prior quarter.

During the quarter, TradeSpark traded more than 2.18 billion MMBtu of natural gas instruments, (with a notional value of over $11.6 billion), and 120 million MWh of electricity instruments (with a notional value of about $6.4 billion).

“In three months we have more than doubled our overall trading volume and significantly strengthened our hold in the natural gas sector,” said Harry Fry, TradeSpark spokesperson. “Energy markets have experienced significant activity recently and we’ve certainly tapped into that. In addition, we’ve also seen a considerable increase in the number of users executing their trades electronically rather than by a voice-broker. This is a clear indication that TradeSpark market participants, now totaling more than 860 users, value the system’s easy-to-use screens, and superior functionality and liquidity. As TradeSpark is powered by eSpeed, energy traders now benefit from access to these markets via the Internet or over their private network — they’re simply finding TradeSpark a better way to execute their trades.”

TradeSpark also reported for the first quarter 2001 that its non-partner trading activity continues to rise. Participants other than the company’s founding members accounted for 53% of the exchanges gas revenues, almost three times that of the previous quarter. The exchange’s single day electricity trading volume high was 5.2 million MWh. The company also announced it has added the live trading of emission allowances and coal products in the beginning of March.

IntercontinentalExchange (ICE) also has been exceeding previous volume records in the first quarter 2001. The exchange, which was founded in March 2000 (see Daily GPI, March 22, 2000), reported it set a weekly volume trading record of more than 370 Bcf of natural gas for the week ending Friday, April 6. The company previously announced that it had broken a single-day record on Wednesday April 4, with more than 97 Bcf of natural gas traded on its system. The company said about half of the week’s trades were at the Henry Hub, the remaining balance was distributed over an additional 16 other gas hubs. Since the start of 2001, ICE said 300 traders have participated on the exchange, transacting over 1,500 Bcf to date. The company said it currently holds about a 14% share of the North American natural gas and derivatives market.

On March 22, ICE announced that its platform notched another single day record on its power exchange, trading 4 million MWh in power (see Daily GPI, March 26). The company said the trading volume on that day was centered on the popular Cinergy Hub. The new record dethrones the one previously set on Feb. 27, when the exchange saw 3 million MWh in trading.

RedMeteor joined the party on Monday, reporting that its Internet and voice brokerage services for crude oil and wholesale refined products — gasoline, distillate and jet fuel — had also recorded record results during the first quarter 2001. The exchange said the total volume transacted during the first quarter reached 185 million boe, exceeding a notional underlying value of $5.3 billion. Both crude and refined products notched record trading volumes during the time period.

The exchange, which turned a year old on April 3, also launched a new financial products platform during the first quarter (see Daily GPI, June 22, 2000). The new platform allows customers to trade a variety of basis swaps and crack spreads utilizing the same technology as RedMeteor’s other platforms.

In the near future, RedMeteor expects to add clearing and risk management functionality to the RedMeteor exchange to help creditors reduce their credit exposure through position netting, as well as provide back office savings by transacting with a single counterparty. Visit their web site at www.redmeteor.com

Entering the scene fashionably late is the much anticipated Nymex energy trading platform. eNymex is currently testing its exchange, and still expects to have the system commercially operable during the second quarter of 2001 (see Daily GPI, Dec. 8, 2000). Nymex believes its exchange can succeed due to the added benefits of clearing services, a neutral, centralized marketplace, and having a highly sophisticated technological platform.

TradeSpark’s energy partners are Coral Energy, Dominion, Axia Energy, TXU Energy Trading and Williams Energy Marketing and Trading. Dynegy Inc. will be a future member. eSpeed Inc. provides the electronic marketplace engine and Cantor Fitzgerald adds voice brokerage services. For more information, visit TradeSpark’s web site at www.tradespark.com.

ICE’s partners include American Electric Power, Aquila Energy, BP Amoco, Deutsche Bank AG, Duke Energy, El Paso, Goldman Sachs, Morgan Stanley Dean Witter, Reliant Energy, Royal Dutch/Shell Group, SG Investment Banking, Mirant (formerly Southern Energy), Totalfina Elf, and Continental Power Exchange — which provided the trading technology and management team. To learn more about the ICE, visit the company’s web site.

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