NGL Trading

HMX is a primary execution platform for natural gas liquids trading. Producers, consumers, traders and financial institutions use the HMX platform to buy or sell physical ethane, propane, butane and natural gasoline at the key industry trading hubs of Mont Belvieu, Texas and Conway, Kansas. The HMX platform is also the most widely utilized electronic platform to execute cleared financial swaps for managing price risk in these markets... price discovery, transparency and execution all in an equal access market.

Transaction Types

Transactions can be executed on HMX in two ways:

Cleared through CME ClearPort® or ICE Block. Cleared transactions are available to participants who are registered for CME ClearPort® or ICE Block and have an account with a registered clearing firm (FCM).

Cleared Products Available to Trade on HMX*

Cleared Swaps	Settlement Basis	Location Basis
Ethane	OPIS	Mont Belvieu, TX
Propane	OPIS Argus	Mont Belvieu, TX Conway, KS ARA Far East Saudi
Normal Butane	OPIS	Mont Belvieu, TX Conway, KS
Iso Butane	OPIS	Mont Belvieu, TX Conway, KS
Natural Gasoline	OPIS	Mont Belvieu, TX Conway, KS

Bilateral physical** through a built in credit management matrix individually and securely managed by each participant company. Bilateral transactions typically settle either through physical delivery at the appropriate delivery location agreed or financially in cash based on a published index agreed. The contracts between counterparties to bilateral transactions are typically those contract arrangements already existing between such counterparties.

**While HMX can add additional products/locations upon request. HMX does not manufacture, buy, sell, distribute, transport, store or otherwise take title to any physical product, nor do we represent or guarantee the quality, specifications or delivery of any product a participant buys or sells with a counterparty they have transacted with through HMX.

STP – Straight through processing of trades into mid and back office deal capture systems is available

INFORMATION CENTER