HOUSTON, Texas, Oct. 24, 2002 — EnergyClear Corp. announced that it has entered into a letter of intent with Virtual Markets Assurance Corporation (VMAC) to develop a program linking VMAC’s AAA-rated credit assurance program to EnergyClear’s clearinghouse functions.
EnergyClear believes that such a linkage could further enhance liquidity in the clearance and settlement of energy contracts.
EnergyClear began operations earlier this month as the first independent U.S. energy clearinghouse registered with the Commodity Futures Trading Commission. VMAC is a leading provider of AAA-rated contract assurance services designed specifically for trading of illiquid commodities.
Dennis Earle, president of EnergyClear, and Wallace Turbeville, CEO of VMAC, said that the two companies intend to develop a seamless program that would provide significantly increased credit protection for energy trading from contract initiation through delivery for both standard and structured OTC contracts.
