HOUSTON–(BUSINESS WIRE)–Eleox LLC (“Eleox”) today announces that all six of its client members are successfully pairing their physical natural gas trades with each other using Eleox’s distributed ledger technology (“DLT”) and smart contracts.
bp, Castleton Commodities International (CCI), Koch Energy Services, Macquarie, Mercuria Energy America, and Shell Energy North America (US), L.P., are the first users of Ox Pair, one of several digitized post-trade software products Eleox is launching this year.
Ox Pair allows customers to digitally confirm their trades directly with other customers instantaneously and securely. This leading-edge DLT provides real-time matching of customers’ trade details and identifies inconsistencies between counterparties’ energy trading risk management (“ETRM”) systems. Confirmed trades are then recorded on each customer’s private, permissioned distributed ledger, which creates a legally binding trade confirmation.
“We have a distinct advantage in that six leading companies in the industry are giving us constant testing and feedback to perfect products that will transform the post-trade process,” said Matthew Almy, Eleox’s CEO. “Without their invaluable input we would not have been able to launch our first DLT product within 12 months of starting our development.”
Shell and bp shared similar sentiments:
“The immediate benefit of digital efficiencies and decreased operational costs are key drivers for us. Eleox’s end-to-end processing from Ox Pair confirmations through digitized nominations and invoicing will be a value-add for our business,” said Orlando Alvarez, head of gas and power trading Americas, bp.
Carolyn Comer, President, Shell Energy North America, LLC, said: “Shell’s go-live on Eleox’s platform is an important milestone in our pursuit of innovation and digitization in our trading business. We are excited to participate in the development of the products Eleox launches this year.”