North American Energy Credit and Clearing Selects SunGard to Optimize Energy Transaction Portfolio

North American Energy Credit and Clearing Corporation (NECC) is using SunGard’s ZaiNet to help streamline its credit and clearing operations and help manage the risk inherent in its energy portfolio. NECC implemented ZaiNet across its gas and power businesses for deal capture, position management, risk assessment, settlements and reporting. NECC also uses ZaiNet to assist with its clearinghouse style margining practices.

Operating as a market-neutral ‘riskless principal’, NECC enters matching physical or financial positions with different counterparties from forward contract through delivery and settlement. As a single counterparty for delivery, NECC provides its customers with critical credit protection services. NECC selected ZaiNet to help support its expansion and maintain a fully secured portfolio of traded products with streamlined transaction flow and seamless integration of its risk management policies and procedures.

“As more companies seek to transact across physical and financial energy markets, we are experiencing rapid growth in our services that are tailored to bridge these markets and consolidate risk capital. In the past year and a half we have transacted over $2 billion in notional power and gas and we are seeing an escalating growth curve. This rapid growth brings with it the challenge of having robust, user-friendly systems that support a wide array of transactions for both physical and financial players,” said George Sladoje, chairman and chief executive officer of NECC, in a press release. “SunGard has met all of our project goals. ZaiNet is giving us the flexibility to support our growing needs and bridge the gap between the physical and financial energy markets,” he added.

“The combination of flexibility, asset optimization and risk reporting that SunGard’s ZaiNet offers will help NECC apply its specialized margining practices for physical and financial energy transactions,” said Matt Mandalinci, president of SunGard’s energy solutions business unit, in the release.