Natural Gas Exchange for Futures for Swaps (EFS) -- Flett Exchange Launches Natural Gas Exchange For Swap EFS Market

Flett Exchange, LLC . launched the Exchange for Swap EFS market on its electronic platform today. The EFS market is actively traded Over the Counter OTC directly between counterparties or through voice brokers. The EFS Market on Flett Exchange allows market participants to swap futures positions with OTC positions cleared on different exchanges. EFS will be offered for Natural Gas with other energy commodities to follow. Most of the EFS trades will involve the swap of positions held on the New York Mercantile Exchange NYMEX and Intercontinental Exchange ICE.

Participants will be able to post their EFS orders directly on the Flett Exchange Electronic Platform. There is great need for a transparent and liquid market for EFS. Hedgers and market-makers alike utilize the EFS market to unwind similar positions which are double margined when held on different exchanges. This unwinding frees up capital enabling a more efficient Natural Gas Market. When capital is freed up particpants are more able to trade greater volumes and narrow bid-offer spreads for the benefit of bonifide hedgers.

When trades are executed on the Flett Exchange Platform a Flett Exchange employee will handle all necessary back office processing with either exchange just as a voice broker would do. Any EFS postings that need to be posted on the NYMEX Floor will be done by Flett Futures, Inc. Flett Futures, Inc. has been executing Futures trades on the NYMEX Floor since 1994.

Market-making opportunities are available along with the OTC broker program. OTC brokers can offer their customers the ability to execute on Flett Exchange thus expanding the pool of counterparties.