June 29, 2021

VIA CFTC PORTAL

Mr. Christopher Kirkpatrick

Secretary of the Commission

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Re: ICE NGX Self-Certification of Rule Amendments: Contracting Party Agreement -

Submission Pursuant to Section 5c(c)(1) of the Commodity Exchange Act and

Commission Regulation 40.6(a)

Dear Mr. Kirkpatrick:

In accordance with Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and

Commodity Futures Trading Commission (“Commission”) Regulation 40.6(a), ICE NGX Canada

Inc. (“ICE NGX”) is submitting this self-certification to amend the ICE NGX Contracting Party

Agreement (“CPA”). The CPA functions as the rulebook for ICE NGX’s exchange and

clearinghouse operations and is a “rule” as that term is defined under Commission Regulation

40.1(i).

ICE NGX intends to implement the amendments on July 26, 2021, or such later date as ICE NGX

may designate.

1. Overview

ICE NGX is making certain amendments (the “Amendments”) to the CPA to:

 add the ERCOT Solar Shape Products as new physically-settled futures contracts in the

ERCOT power region;

 update and enhance the provisions relating to regulatory and compliance matters,

including relating to participants’ trading conduct;

 correct an omission in the General Suspension powers; and

 clarify the representations and warranties made by a Contracting Party transacting in

physical natural gas contracts at U.S. delivery points.

The text of the amended CPA provisions is attached as the Appendix to this letter.
2. ERCOT Solar Shape Products

ICE NGX is adding eight (8) new physically-settled power products in the ERCOT power region.

The ERCOT Solar Shape Products will allow ICE NGX Contracting Parties on both the generation

and load sides of the market to participate in trading and clearing power in the ERCOT market in

line with the shape of the solar generation curve.

The ERCOT Solar Shape Products meet ICE NGX’s product eligibility standards, developed in

accordance with Core Principle C, including, in particular, ICE NGX’s ability to manage the risks

associated with the ERCOT Solar Shape Products.

ICE NGX intends to implement the ERCOT Solar Shape Products for trading beginning July 26,

2021.

Terms and Conditions of the ERCOT Solar Shape Products

Product Name Hub Name Hub Operator

Phys FUT, FP, HE 10-17 North 345kV Hub ERCOT

Phys FUT, FP, HE 10-17 South 345kV Hub ERCOT

Phys FUT, FP, HE 10-17 Houston 345kV Hub ERCOT

Phys FUT, FP, HE 10-17 West 345kV Hub ERCOT

Phys FUT, FP, HE 10-17 7x North 345kV Hub ERCOT

Phys FUT, FP, HE 10-17 7x South 345kV Hub ERCOT

Phys FUT, FP, HE 10-17 7x Houston 345kV Hub ERCOT

Phys FUT, FP, HE 10-17 7x West 345kV Hub ERCOT

The ERCOT Solar Shape Products are reflected as amendments to Schedule “D” of the CPA.

The revisions to Schedule “D” - ICE NGX Product List to reflect the ERCOT Solar Shape Products

are included in the Appendix to this letter.

ICE NGX will provide the ERCOT Solar Shape Products to our customers to be settled in

accordance with the same terms as ICE NGX’s other ERCOT power product offerings.

3. Details of Rule Changes

Regulatory & Compliance Matters

The CPA establishes, in Article 6, the framework for ICE NGX to monitor compliance with its rules,

and for ICE NGX to prosecute non-compliance with the rules. The Amendments are intended to

clarify and enhance the relevant provisions of Article 6 and other related provisions in the CPA,

including to:

(a) provide for a consistent definition of “Rules” and clarify the authority of Compliance staff;

(b) update, clarify and enhance the list of prohibited activities by (i) listing out the individual

violations, using updated, industry-standard wording that will be familiar to most market

participants; (ii) enhancing the description of certain violations, such as spoofing; and (iii)
certain violations are removed from 6.1. which are either already covered elsewhere in the

CPA or are not properly within the jurisdiction of ICE NGX; and

(c) enhance the authority of the Disciplinary Committee in respect of a Contracting Party

Suspension.

General Suspension

The CPA grants ICE NGX the authority, in certain circumstances, to declare a “General

Suspension”. The CPA defines “General Suspension” as the termination of access to trading

and/or clearing access for all Contracting Parties in relation to some or all products, whether on

a temporary or longer basis.

The amendments to section 6.4 of the CPA correct an omission, by extending the authority to

declare a General Suspension to also cover physical natural gas products at Assigned Delivery

(“AD”) points.

Contracting Party Representations and Warranties

The amendments to Schedules “G” and “J” to the CPA correct an error, by clarifying that the

Contracting Party is making all of the listed representations and warranties in respect of physically

settled natural gas contracts for delivery at U.S. delivery points and U.S. AD delivery points.

4. Compliance with the Act and Regulations

ICE NGX reviewed the Amendments and determined that they comply with the requirements of

the Act and the rules and regulations promulgated by the Commission in implementing the Act.

In this regard, ICE NGX reviewed the derivatives clearing organizations core principles (“Core

Principles”) and determined that the amendments are potentially relevant to the following Core

Principles and the applicable regulations of the Commission thereunder.

Participant and Product Eligibility (Core Principle C): The Amendments relating to the ERCOT

Solar Shape Products comply with Core Principle C - Participant and Product Eligibility and

Commission Regulation 39.12, as the ERCOT Solar Shape Products meet ICE NGX’s product

eligibility standards, developed in accordance with Core Principle C, including, in particular, ICE

NGX’s ability to manage the risks associated with the ERCOT Solar Shape Products

Participant and Product Eligibility (Core Principle C): The Amendments relating to Regulatory &

Compliance facilitate ICE NGX’s compliance with Core Principle C - Participant and Product

Eligibility and Commission Regulation 39.12, as the Amendments clarify and enhance ICE NGX’s

authority to monitor for and investigate potential non-compliance by Contracting Parties with ICE

NGX’s Rules (as defined in the Amendments).

Risk Management (Core Principle D): The Amendments relating to General Suspensions facilitate

ICE NGX’s compliance with Core Principle D - Risk management and Commission Regulation

39.13, as the Amendments enhance ICE NGX’s additional authority to act to protect the

derivatives clearing organization. Specifically, the amendments strengthen ICE NGX’s authority

to take appropriate action to manage risks through a General Suspension in extreme

circumstances.
Settlement Procedures (Core Principle E): The Amendments relating to Contracting Party

representations and warranties in physically-settled U.S. natural gas products facilitate ICE NGX’s

compliance with Core Principle E - Settlement procedures and Commission Regulation 39.14, as

the Amendments correct errors in the relevant provisions. Specifically, the Amendments clarify

that a Contracting Party is making each of the listed representations and warranties, and not one

of the listed representations and warranties at its election.

4. Certifications

ICE NGX hereby certifies that the Amendments to the CPA discussed in this submission comply

with the Act and the rules and regulations promulgated by the Commission thereunder. ICE

NGX is not aware of any substantive opposing views expressed regarding the Amendments.

ICE NGX further certifies that, concurrent with this filing, a copy of the submission was posted

on ICE NGX’s website and may be accessed at https://www.theice.com/ngx.

* * * * *

Please do not hesitate to contact me (403-974-1740) or our President & COO, Greg Abbott (403-

974-1740) for any further information the Commission or its staff may require in connection with

this notice.

Yours truly,

Martin McGregor

General Counsel & CCO

Encls.

cc: Greg Abbott, ICE NGX
APPENDIX

AMENDMENTS TO THE ICE NGX CONTRACTING PARTY AGREEMENT

TERMS AND CONDITIONS

[Note: Insertions are underlined, deletions are struck through.]

1.2 Definitions

...

“Agreement” means, collectively, the Execution Page, the Terms and Conditions 

and all Schedules, each as may be amended, restated or replaced from time to 

time in accordance with this Agreement which collectively shall constitute the 

Rules of ICE NGX Trading and Clearing Systems;

“Rules” means this Contracting Party Agreement, all Schedules thereto, and any 

interpretations, guidance, or similar notices issued by Exchange regarding the 

Contracting Party Agreement;

...

1.6 Standard Contracting Party Agreement

This Agreement will be the standard form of agreement between Exchange and each of 

the Contracting Parties in respect of the ICE NGX Trading System and ICE NGX Clearing 

System (the “Contracting Party Agreement”); the intention being that each of the 

Contracting Parties will be equal in respect of their respective rights and Obligations, 

except as specifically otherwise provided in the Contracting Party Agreement. It further 

being the intention that the Contracting Party Agreement shall constitute the rules of ICE 

NGX Trading System and ICE NGX Clearing System and that eEach Contracting Party, 

by entering into the Contracting Party Agreement, shall be bound by the Contracting Party 

Agreement, acknowledges that the provisions of the Agreement form part of the Rules of 

the Exchange, and acknowledges the jurisdiction of Exchange. Exchange will publish

provide the Contracting Party with a list of all the other Contracting Parties on

requestExchange’s Website.

...

ARTICLE 6 – CODE OF CONDUCT REGULATORY AND COMPLIANCE

6.1 Code of Conduct: Prohibitions 

The Contracting Party agrees that it will not: 
a. engage in any of the following market actions or activity:

(i) manipulatemanipulating or attempting to manipulate prices of any Product 

offered by Exchange;, including, without limitation, by

(ii) spreading inaccurate information about the market that may influence 

prices on the Exchange;,

(iii) reporting false transactions to the Exchange;,

(iv) arranging and executing wash transactions, or money passes;,

(v) conducting fraudulent transactions; , 

(vi) participating in non-competitive transactions, other than as permitted under

these Rules; or

(vii) entering orders, or causing orders to be entered, other than in good faith 

for the purpose of executing bona fide transactions;

any other act designed or intended to artificially affect reported revenues;

b. collude with other market participants to affect the price or supply of any 

commodity, market or tenor, allocate territories, customers or products, or 

otherwise unlawfully constrain competition;;

c. conduct trading with the intent of misrepresenting the financial condition of the 

Contracting Party or its related entities;

cd. engage in any act of fraud, bad faith, extortion, dishonest conduct, 

misrepresentation, or material misstatement, or any other unlawful activity 

including, without limitation, in respect of any information provided to Exchange,

including financial information, or matter pertaining to the performance of any 

Transaction or in any other dealing with Exchange or the other Contracting Parties; 

de. wilfully or negligently engage in unauthorized access to the Exchange, or assist a 

party in obtaining unauthorized access to the Exchange; or

ef. commit any act, or do anything, which is, or could foreseeably be, in substance, 

detrimental to the interests, welfare or integrity of Exchange, the ICE Trading 

Platform, ICE NGX Trading System or ICE NGX Clearing System. 

6.2 Trade Practice Oversight 

a. Compliance staff shall have the right authority to

(i) to monitor activities in respect of the entering into and performance of 

Transactions through the ICE NGX Trading System, the ICE Trading 

Platform, and/or the ICE NGX Clearing System, 

(ii) to conduct investigations of possible violations of section 6.1 the Rules, and 

to request the production of and examine any documents, and 
(iii) make inquiries and do such other things as are reasonably necessary or 

advisable to verify compliance by all Contracting Parties with section 6.1

the Rules.

b. The Contracting Party agrees to promptly provide to compliance staff copies, if 

requested, of documents and records related to its activities pursuant to this 

Agreement and agrees it will ensure that any such information is accurate. The 

Contracting Party will cause a person under the control or direction of the 

Contracting Party who is reasonably knowledgeable in respect of the relevant 

activities of the Contracting Party under this Agreement to be available by phone 

or at the offices of Exchange in Calgary at a reasonable time and for a reasonable 

period in respect of any such request inquiry by compliance staff.

c. The Chief Compliance Officer has the authority to:

(i) direct that compliance staff make further inquiriesenquiries;

(ii) refer the matter to the Disciplinary Committee; 

(iii) issue a warning letter to the Contracting Party, informing it that there may 

have been a violation of Exchange the rRules, and that a continuation of 

such activity may result in disciplinary action; or

(iv) where the Chief Compliance Officer is of the opinion that a violation has 

occurred, enter into a written settlement agreement with the Contracting 

Party, whereby the Contracting Party, with or without the admission of

admitting guilt, may agree to

(I) a cease and desist order or a reprimand;

(II) a fine of up to $100,000 for each violation alleged plus the monetary 

value of any gains received as a result of the alleged violation; 

and/or

(III) a Contracting Party Suspension. 

d. The Disciplinary Committee has authority to:

...

(v) cause a Contracting Party Suspension, which. Such Contracting Party 

Suspension shall take effect immediately upon the provision of notice to 

the effected Contracting Party for the term specified in such notice, and 

extend, vary or withdraw any such Contracting Party Suspension; and/or

...
6.3 Hearings

...

c. Hearing Procedures – Hearings will be conducted by a Hearing Panel in 

accordance with Exchange’s hearing procedures, as amended from time to time. 

Each of Athe Contracting Party and Exchange will be entitled to be represented by 

counsel and to present witnesses and documentary evidence. No formal rules of 

evidence shall apply, and the Hearing Panel shall be entitled to accept or reject 

any evidence it considers proper.

d. Decisions of the Hearing Panel – The Hearing Panel may confirm, vary or reverse 

a decision of the Disciplinary Committee., A written decision setting out the Hearing 

Panel’s reasons for decision will be provided to the Contracting Party. 

...

6.4 Additional Remedies Available to Exchange

a. General Suspension – Exchange, in its sole discretion, may, but is not obligated 

to, cause a General Suspension for such period as it believes necessary or 

advisable if Exchange believes any of the following events or conditions are 

occurring or have occurred: 

...

(iv) any event which constitutes, or may in the opinion of Exchange constitute, 

a force majeure event, as defined in Schedules “F”, “G”, “J” or “K”;

...

AMENDMENTS TO SCHEDULE “G” - PHYSICALLY SETTLED GAS FUTURES 

CONTRACTS - U.S. DELIVERY POINTS.

...

8. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTING PARTY

The Contracting Party represents and warrants in respect of any Physically Settled Gas 

Futures Transaction entered into by such Contracting Party that at the time of delivery or 

receipt: 

a. If it is the Seller: 

(i) it has the full right and authority to sell gas; 

(ii) it owns and has title to gas, or irrevocable authority to sell gas; 

(iii) any gas delivered to Exchange shall be free from all royalty payments, 

Liens or encumbrances whatsoever; and or
(iv) it has all necessary rights and entitlements with the applicable Delivery 

Point Operator for the delivery of gas on a firm basis at the applicable 

Delivery Point with sufficient inventory to deliver the net Daily Contract 

Quantity sold for each Gas Day. 

b. If the Buyer: 

(i) it has the full right and authority to purchase gas; and or

(ii) it has all necessary rights and entitlements with the applicable Delivery 

Point Operator to take gas on a firm basis at the applicable Delivery Point 

with sufficient capacity to take the net Daily Contract Quantity purchased 

for each Gas Day.

...

AMENDMENTS TO SCHEDULE “J” - PHYSICALLY SETTLED GAS FUTURES 

CONTRACTS WITH ASSIGNED DELIVERY - U.S. DELIVERY POINTS

...

8. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTING PARTY

The Contracting Party represents and warrants in respect of any Physically Settled Gas 

Futures Transaction entered into by such Contracting Party that at the time of delivery or 

receipt: 

a. If it is the Seller: 

(i) it has the full right and authority to sell gas; 

(ii) it owns and has title to gas, or irrevocable authority to sell gas; 

(iii) any gas delivered to Exchange shall be free from all royalty payments, 

Liens or encumbrances whatsoever; and or

(iv) it has all necessary rights and entitlements with the applicable Delivery 

Point Operator for the delivery of gas on a firm basis at the applicable 

Delivery Point with sufficient inventory to deliver the net Daily Contract 

Quantity sold for each Gas Day. 

b. If the Buyer: 

(i) it has the full right and authority to purchase gas; and or

(ii) it has all necessary rights and entitlements with the applicable Delivery 

Point Operator to take gas on a firm basis at the applicable Delivery Point 

with sufficient capacity to take the net Daily Contract Quantity purchased 

for each Gas Day.
AMENDMENTS TO SCHEDULE “D” - ICE NGX PRODUCT LIST

[Note: Only the rows that are being changed in Schedule “D” are shown below.]

[Note: Insertions are underlined, deletions are struck through.]

ICE NGX PHYSICAL POWER PRODUCTS - U.S.

Product Name

on ICE

Hub

Name

NGX

Product

= NGX;

NGX

Cleared

Product

= ICE

Phys

or

Fin

Product

Type

Unit /

Currency

Floating

Price -

Index 1

Floating

Price -

Index 2

Index 1

Publication

Index 2

Publication

Hub

Operator

or U.S.

Hub

Operator Tariff

Accessed

via

WebICE

and

trades /

Clears as

NGX:

OTC

Clears

thru

DCO

as:

(EFRP)

Minimum

Futures

Block

Size

(MWh)

Phys FUT, FP,

HE 10-17

North

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1

Phys FUT, FP,

HE 10-17

South

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1

Phys FUT, FP,

HE 10-17

Houston

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1

Phys FUT, FP,

HE 10-17

West

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1

Phys FUT, FP,

HE 10-17 7x

North

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1

Phys FUT, FP,

HE 10-17 7x

South

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1

Phys FUT, FP,

HE 10-17 7x

Houston

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1

Phys FUT, FP,

HE 10-17 7x

West

345kV

Hub ICE Phys FP USD/MWh ERCOT

ERCOT

Protocols

Physically

Settled

Future

Physically

Settled

Future 1