The acquisition of onExchange and its software systems will complement and enhance The Clearing Corporationâs offering of clearing and technology solutions as it expands its business into more diverse and global markets.
Through its Extensible Clearing System (ECS), onExchange has provided a state-of-the-art application suite based on J2EE standards utilizing the Java programming language and relational database technology. This framework allows for hardware and vendor independence, real-time transaction processing and straight-through processing (STP) to exchange and clearinghouse customers. ECS currently is licensed by the New York Board of Trade (NYBOT), New York Clearing Corporation (NYCC), the New York Mercantile Exchange (NYMEX), the London Clearing House (LCH), and Hedge Street.
The onExchange ECS software platform supports J2EE standards and messaging protocols, enabling wide-ranging access to integration points with legacy and new applications. The web-based user interface provides end users real-time access to information and enables them to manage their accounts and portfolios easily. ECS is designed for easy integration with other systems, particularly those moving to STP.
Richard Jaycobs, Chief Executive Officer of onExchange, has more than 20 years experience in technology and the futures industry. Mr. Jaycobs will be joining The Clearing Corporation as a member of the senior management team and will continue onExchangeâs business activities.
The Clearing Corporationâs purchase will include onExchangeâs two subsidiaries, onExchange Board of Trade, Inc., and onExchange Clearing Corporation; although dormant, the former has been licensed as a DCM (designated contract market), and the latter has been licensed as a DCO (derivatives clearing organization) by the Commodity Futures Trading Commission.
In this transaction, Sandler OâNeill & Partners, L.P. acted as financial advisor to The Clearing Corporation; Resolution Partners, LLC, acted as financial advisor to onExchange.