HMX Commodity Exchange Platform

The Global Electronic Marketplace for Energy, Chemicals, Plastics and Industrial Materials

The HMX platform is an over-the-counter (OTC) electronic transaction exchange for downstream and midstream energy products and industrial raw materials such as natural gas liquids, refined and intermediate fuels, petrochemicals, and commodity plastics. The technology platform is an internet-based platform with a functionality designed for and with the input of industry participants. Contracts cover the major geographic trading hubs in North America, Europe and Asia and include a wide range of contract structures and terms. Key attributes of the platform are:

Single-click, direct access to multiple markets
Bilateral or financially cleared transactions
Multi-clearinghouse choice with real-time integration
Real-time market data including market depth
Straight through processing – back office integration API
Equal participant access to markets
Pre and post-trade transparency
Firm orders
Complete actions logging and full audit trail
User-friendly help menu system

Operating Methodology & Business Rules

Posted bids and offers on the platform are transmitted over the internet through state of the art encryption technology in real time. All bids and offers are completely anonymous, however, all bids and offers are fully transparent to all participants in the market. Counterparties are revealed to one another only upon satisfactory negotiation or acceptance of transaction terms. The HMX platform contains a built in credit management matrix for bilateral transactions that is individually and securely managed by each participant company. The system security will not allow a participant company to transact with a counterparty for which it does not have pre-existing matching credit terms. Bilateral transactions typically settle either through physical delivery at the appropriate delivery location agreed or financially in cash based on a published index agreed.

Participation

Participant companies include producers, consumers, distributors, traders, transportation and logistics companies and financial institutions within each product class. Participant companies must be qualified investors or commercial entities and must execute the standard HMX User Agreement.

INFORMATION CENTER