SOURCE: Parity Energy

Parity Energy

January 17, 2012 10:07 ET

Parity Energy Platform (PEP) Trades 1 Million Option Contracts

NEW YORK, NY--(Marketwire - Jan 17, 2012) - Parity Energy is pleased to announce that the Parity Energy Platform (PEP) has executed 1 million option contracts since its first trade in 2008. PEP is Parity's online marketplace that gives traders electronic access to over-the-counter (OTC) energy and precious metals option markets. The 1 million contract mark represents a notional volume of 6 billion MMBtu of natural gas and 400 million barrels of oil.

"Surpassing the 1 million contract mark is more than a symbolic milestone: it demonstrates PEP's maturity and robustness, as well as the market participants' growing acceptance of PEP as the right solution for the electronic trading of OTC options," says Charles Reyl, CEO of Parity Energy. "The first million is the hardest."

This milestone is significant in the context of the financial regulatory reform promoted by the Dodd-Frank Act, in particular the requirement for many OTC transactions to take place on swap execution facilities (SEF). In contrast with other candidates for SEF status, Parity Energy's execution facility is operational today and already serves as a significant source of liquidity for the trading community.

"PEP has customers sending and receiving hundreds of thousands of order changes per day. We're able to service them in a way that traditional OTC brokering couldn't possibly keep up with," says Kent Vogel, VP of Trading Solutions at Parity Energy. "It's clear that this is the future of OTC trading."

"This is just the beginning for Parity Energy leading the transformation of the options market," says Lou Pellathy, VP of Parity Energy's brokerage. "We will continue expanding our model to include new products in the commodities sector and beyond."

About Parity Energy: OTC Markets Modernized -- Parity Energy (Parity) matches institutional buyers and sellers of energy and precious metals options. Unique in its category, Parity delivers the combined benefits of electronic trading and high-quality voice service through the Parity Energy Platform (PEP). PEP is Parity's award-winning electronic trader-to-trader marketplace for off-exchange cleared options. PEP combines an electronic order book, request for quote (RFQ) capability, system connectivity and full support from Parity's own voice brokerage. Parity operates as an exempt commercial market and expects to transition to a swap execution facility. Learn more at

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