The Global Electronic Marketplace for Midstream Energy, Petrochemicals and Plastics
The HMX platform is an over-the-counter (OTC) electronic transaction platform for downstream and midstream energy products such as natural gas liquids, refined and intermediate fuels, petrochemicals, and commodity plastics.
The technology platform is internet-based 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
- Hit/Lift OR Negotiation capability
- 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
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
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 settle through physical delivery at the appropriate agreed delivery location. HMX also allows participants to execute OTC cleared transactions for submissions to either CME ClearPort®, ICE Clear Europe or Nasdaq Futures.