Leading Energy Trading Firms Launch Eleox, A Joint Venture To Solve Operational Inefficiencies In Natural Gas Post-Trade Processes
HOUSTON (November 15, 2021) – A select group of leading companies that market and trade natural gas in North America has formed and invested in a new, independent company, Eleox. The initial participants in this joint venture – the first of its kind in North America – include bp, Castleton Commodities International LLC (CCI), Koch Energy, Macquarie Group, Mercuria Energy America, and Shell Energy North America (US), L.P.
Eleox will re-imagine commodity post-trade processing through the creation of an enterprise-grade application based on distributed ledger technology (DLT) to replace many existing, siloed post-trade systems with a unified, full lifecycle platform.
This secure, real-time digital approach is being created to manage transactions from post-trade through settlements, replacing paper-based contracts and manual reconciliation processes, and will initially focus on enhancing the post-trade process for North American physical natural gas. The enhanced settlement processing platform will result in:
- Increased transparency and accountability while maintaining data security using distributed ledger technology;
- A single source of truth throughout the trade life cycle; and
- Fewer data errors, fewer mismatches, and less manual reconciliation, minimizing delays in transaction settlements
The platform will be designed by Eleox and tested by its founding members, which will constitute a key segment of its projected user base and is expected to be available for use by all market participants in late 2023.