About NOCC

Why NOCC

NOCC supports the U.S. physical power and gas markets by integrating the physical and financial markets through market-neutral credit and clearing services. We develop and provide credit and clearing services to North American energy markets in a way that is unique.

What Makes NOCC Unique?

NOCC’s services address one of the most formidable industry infrastructure challenges—a comprehensive credit risk/clearing solution for market participants whose transactions result in energy going to delivery.

These “physical market participants” trade forward contracts that are intended for delivery as distinguished from buying and selling futures, or other commodity derivatives which are typically offset or settled before delivery.

Today’s physical energy markets have evolved through rudimentary trading customs and delivery mechanisms that create credit risk ‘silos’ across the transaction landscape and through the delivery process.  These practices therefore result in separate collateral 'silos' that are held by the Regional Transmission Operators (RTOs), gas pipelines/storage, exchanges and multiple bilateral counterparties throughout a transaction's life cycle.

NOCC Provides Benefits for Both Physical and Financial Traders

Having a variety of matched positions with counterparties in both forward and delivery markets—for both power and gas—NOCC acts as a single counterparty to to physcal traders throughout the delivery process therefore reducing credit risk and consolidating collateral requirements. And, financial traders transacting with NOCC can always close out their position prior to delivery.

By acting as a bridge between physical and financial players/markets, NOCC enhances overall market liquidity.