ICE NGX Canada Inc. 

Suite 2610, 225 6th Avenue SW 

Calgary, AB 

Canada T2P 1N2 

ngx.com 

ice.com

June 20, 2023 

VIA CFTC PORTAL 

Christopher J. Kirkpatrick 

Office of the Secretariat 

Commodity Futures Trading Commission 

Three Lafayette Centre 

1155 21st St., N.W. 

Washington, D.C. 20581 

Re: Amendment to ICE NGX Canada Inc. Rules - Submission Pursuant to Section 

5c(c)(1) of the Commodity Exchange Act and CFTC Regulation § 40.6(a): Settlement 

Processing 

Dear Mr. Kirkpatrick: 

Pursuant to Section 5c(c)(1) of the Commodity Exchange Ac

-certification relating to changes to the 

. T

Regulation 40.1(i). 

1. Overview 

Effective August 1, 2023 ICE NGX is making changes to its settlement processes for monthly 

invoices relating to Financially Settled Futures Transactions 

. Specifically, monthly Financial Settlement Invoices will be settled into and out of the 

 Account. 

On the Financial Settlement Date, invoices will be settled on a net basis setting off amounts owing 

to and from the Contracting Party on that date as MTM Settlement Amount (i.e., settlement of 

daily variation margin gains and losses) against amounts owing to and from the Contracting Party 

on that date under its Financially Settled Futures Transactions. 

The Amendments implement these changes. The text of the amended CPA provisions is attached 

as the Appendix to this letter. Concurrently with this submission, ICE NGX is publishing a second 

information notice to provide Contracting Parties with further information regarding this transition. 

ICE NGX intends to implement the Amendments on August 1, 2023 or on such later date as ICE 

NGX may designate. 

Note: All capitalized terms not otherwise defined herein have the meaning given to them in the 

CPA. 
ICE NGX Canada Inc. 

Suite 2610, 225 6th Avenue SW 

Calgary, AB 

Canada T2P 1N2 

ngx.com 

ice.com

2. Details of Rule Changes 

The CPA describes the settlement process for invoices, including for MTM Settlement Amounts 

and monthly Financial Settlement Invoices. 

While ICE NGX is also making technological changes relating to its process for settling MTM 

Settlement Amounts, Contracting Parties will not notice any changes with respect to this process. 

With respect to monthly Financial Settlement Invoices, the Amendments 

 update the definition of Cash Collateral to include amounts paid into the Cash Collateral 

Account in respect of monthly Financial Settlement Invoices; 

 amend the provisions relating to payment of invoices to specify that amounts paid in 

respect of monthly Financial Settlement Invoices are paid into and out of the Cash 

Collateral Account; 

 describe the payment of net amounts on Financial Settlement Dates, setting off amounts 

owing to and from the Contracting Party on that date as MTM Settlement Amount against 

amounts owing to and from the Contracting Party on that date under its Financially Settled 

Futures Transactions; and 

 make other clarifying amendments. 

With respect to monthly invoices for Physically Settled Futures Transactions ement 

, the Amendments consolidate two provisions relating to invoice settlement into the 

provision relating to wire payment of Physical Settlement Invoices. 

3. Compliance with Core Principles 

ICE NGX reviewed the Amendments and determined that they comply with the rules and 

regulations of the Commission. In this regard, ICE NGX reviewed the derivatives clearing 

Amendments are potentially relevant to the following Core Principles and applicable regulations 

of the Commission thereunder. 

Compliance (Core Principle A): The Amendments are consistent with Core Principle A - 

Compliance and Commission Regulation 39.10, as the Amendments clarify and enhance ICE 

olicies and procedures for complying with Commission regulations and internal policies. 

Risk Management (Core Principle D): The Amendments are consistent with Core Principle D - 

Risk Management and Commission Regulations § 39.13(g)(10) and (14) generally, as the 

Amendments clarify that 

in respect of monthly Financial Settlement Invoice amounts are deemed to be Cash Collateral 

upon deposit. 
ICE NGX Canada Inc. 

Suite 2610, 225 6th Avenue SW 

Calgary, AB 

Canada T2P 1N2 

ngx.com 

ice.com

Settlement Procedures (Core Principle E): The Amendments are consistent with Core Principle E 

- Settlement Procedures and Commission Regulation § 39.14 generally, as the Amendments 

describe and facilitate changes to invoice settlement processes. 

4. Certifications 

ICE NGX certifies that the proposed Amendments discussed in this submission comply with the 

Commodity Exchange Act, including the Core Principles and the Regulations of the Commission 

thereunder. ICE NGX is not aware of opposing views expressed regarding the Amendments. ICE 

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

Yours truly, ________________________ By: Greg Abbott 

Title: President & COO 

Date: June 20, 2023 
ICE NGX Canada Inc. 

Suite 2610, 225 6th Avenue SW 

Calgary, AB 

Canada T2P 1N2 

ngx.com 

ice.com

APPENDIX 

AMENDMENTS TO THE ICE NGX CONTRACTING PARTY AGREEMENT 

TERMS AND CONDITIONS 

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

ARTICLE 1 - DEFINITIONS AND INTERPRETATION 

1.2 Definitions 

, in respect of a Contracting Party, all cash in the Contracting 

(i) all cash delivered by or on behalf of the Contracting Party to Exchange as Eligible 

Collateral Support, (ii) all amounts paid into the Cash Collateral Account by Exchange in settlement of 

and Daily Financially Settled Futures Settlement Amounts, MTM Settlement 

Amounts, Cash Settlement Amounts and/or Futures Clearing Amounts owing to 

the Contracting Party, and 

(iii) Contracting Party Interest amounts deposited by Exchange into the Cash 

Collateral Account; 

ARTICLE 4 - PHYSICALLY SETTLED FUTURES TRANSACTIONS AND PHYSICALLY 

SETTLED FUTURES PRODUCTS 

4.1 Physically Settled Gas Futures Products - General 

h. Settlement and Netting of Invoice Amounts All amounts payable by a Contracting Party 

under any Physically Settled Gas Futures Transaction are due and are payable and are 

to be settled pursuant to Article 7 and the terms of this Agreement. On the Physical 

Settlement Date, Exchange will not remit any amounts payable from Exchange to the 

Contracting Party until all amounts payable from the Contracting Party to Exchange have 

been received by Exchange.
ICE NGX Canada Inc. 

Suite 2610, 225 6th Avenue SW 

Calgary, AB 

Canada T2P 1N2 

ngx.com 

ice.com

4.2 Physically Settled Power Futures Products - General 

f. Settlement and Netting of Invoice Amounts All amounts payable by a Contracting Party 

under any Physically Settled Power Futures Transaction are due and are payable and are 

to be settled pursuant to Article 7 and the terms of this Agreement. On the Physical 

Settlement Date, Exchange will not remit any amounts payable from Exchange to the 

Contracting Party until all amounts payable from the Contracting Party to Exchange have 

been received by Exchange.

ARTICLE 7 - INVOICES AND TAXES 

7.2 Payment of Invoices 

a. Wire Payment of Invoices for Physically Settled Gas Futures Transactions and Physically 

Settled Power Futures Transactions Except for payment of MTM Settlement Amounts 

or as otherwise agreed between the Exchange and the Contracting Party, payment of 

Invoices for Physically Settled Gas Futures Transactions and Physically Settled Power 

Futures Transactions by Contracting Party to Exchange and by Exchange to Contracting 

Party shall be made by wire payment to the banking instructions provided in accordance 

with this Agreement and Exc

correspondent or intermediary bank fees relating to payments of Invoices for Physically 

Settled Gas Futures Transactions and Physically Settled Power Futures Transactions by 

Contracting Party to Exchange and by Exchange to Contracting Party are the 

responsibility of the Contracting Party. On the Physical Settlement Date, Exchange may, 

in its sole discretion, hold any amounts payable from Exchange to the Contracting Party 

in respect of any Invoice until all amounts payable from the Contracting Party to Exchange 

then due and payable have been received by Exchange.

b. Payment of Invoices for MTM Settlement Amounts, Daily Financially Settled Futures 

Amounts, Cash Settlement Amounts and Futures Clearing Amounts (i) Exchange will identify a Cash Collateral Account for each Contracting Party that 

enters into a Financially Settled Futures Transaction. 

(ii) Unless otherwise agreed to by Exchange, payments in respect of MTM Settlement 

Amounts, Daily Financially Settled Futures Amounts, Cash Settlement Amounts 

and Futures Clearing Amounts; 

(A)(i) by Exchange to the Contracting Party will be made by wire transfer by 

Exchange 
ICE NGX Canada Inc. 

Suite 2610, 225 6th Avenue SW 

Calgary, AB 

Canada T2P 1N2 

ngx.com 

ice.com

(B)(ii) by the Contracting Party to Exchange will be made by wire transfer by 

Exchange from the 

Exchange Account identified by Exchange for receiving such funds. 

(iii) On each Business Day, Exchange will Set-Off any and all such amounts owing as 

between the Exchange and the Contracting Party in respect of MTM Settlement 

Amounts, Daily Financially Settled Futures Amounts, Cash Settlement Amounts 

and Futures Clearing Amounts to arrive at a single net settlement amount payable 

by Exchange to the Contracting Party or by the Contracting Party to Exchange. 

 (iv) The Contracting Party is responsible for ensuring its Cash Collateral Account has 

sufficient funds in excess of the applicable Margin Requirement to satisfy the net 

settlement amount calculated and instructed by Exchange in accordance with 

subparagraph (iii), MTM Settlement Amount prior to 12:00 p.m. Mountain 

Prevailing Time on the applicable Settlement Date. 

c. Outstanding Request for Eligible Collateral Support Exchange may will be entitled to 

deduct from the payment of any Invoice an amount equal to any shortfall, as at the relevant 

Settlement Date, in the provision by the Contracting Party of Eligible Collateral Support 

that has been requested in acco may will hold such amount 

as Collateral until any such shortfall has been rectified to the satisfaction of Exchange. 

e. Pledge of Collateral to Facilitate Payment of Invoices 

all amounts owing by the Contracting Party in respect of a Transaction to ICE NGX on an 

Invoice are collateralized. On each Settlement Date or Option Premium Date, as 

owing by the Contracting Party on that Settlement Date or Option Premium Date, as 

settlement payment is received by Exchange.