Companies Form Internet-Based Energy ExchangeSeven companies representing some of the leaders in the banking and energy sectors said yesterday they will form an online market for trading over-the-counter energy, metals and other commodities.
According to reports, the venture, IntercontinentalExchange, could become one of the largest business-to-business initiatives on the Internet to date.
The companies involved, BP Amoco, Royal/Dutch Shell, Totalfina, Goldman Sachs, Societe Generale, Morgan Stanley Dean Witter and Deutsche Bank, said they plan to begin trading petroleum and precious metals-based OTC products later this year.
The founding companies will also develop additional markets for natural gas, electrical power and a variety of metals at a later date.
The companies will provide initial marker liquidity for the exchange and said there would be no formal membership and no dues or fees beyond those incurred during trading.