eSpeed, Coral Energy, Dominion, Dynegy, Koch Energy Trading, TXU, Williams and
Cantor Fitzgerald Announce the Formation of TradeSpark, LP
Business Editors
NEW YORK--(BUSINESS WIRE)--Sept. 25, 2000--
The World's Most Comprehensive Energy Marketplace
Group Creates Electronic Marketplaces In Multi-Billion Dollar
Energy Industry - Market To Open for Business October 2
Today the world's most comprehensive energy trading marketplace
was created when eSpeed, Inc. (NASDAQ: ESPD), a leading interactive
electronic marketplace engine for business-to-business (B2B)
e-commerce, signed an agreement with Coral Energy, Dominion (NYSE: D),
Koch Energy Trading, Inc., TXU Energy Trading, a subsidiary of TXU
(NYSE: TXU), Williams Energy Marketing and Trading Company, a
subsidiary of Williams (NYSE: WMB), and Cantor Fitzgerald, one of the
world's leading voice brokerages, to form TradeSpark, LP. Dynegy Inc.
(NYSE: DYN) will be a future member in the TradeSpark partnership, and
will begin trading in the TradeSpark marketplace immediately. Entergy
(NYSE: ETR) also plans immediate participation in the marketplace, and
will become an investor in TradeSpark through Entergy-Koch LP, upon
close of that venture later this year.
The agreement will create electronic marketplaces for natural gas,
electricity, coal, weather derivatives, nitrogen oxide and sulfur
dioxide emission credits. It is anticipated that other major industry
participants will join TradeSpark shortly. For more information on
TradeSpark, visit www.trade-spark.com
Commenting on the deal, spokesperson for the members of TradeSpark
Harry Fry said, "As the world's only partnership offering in depth
energy market knowledge and liquidity with a proven world-class
technology platform, TradeSpark will revolutionize energy trading. The
TradeSpark partnership is inclusive and draws on the experience of all
participants to bring speed, neutrality, efficiency and technological
leadership to the energy trading market. TradeSpark has all the tools
to offer the most comprehensive electronic trading environment for a
broad array of energy products and offer the most reliable real-time
trading service."
TradeSpark is a fully electronic marketplace powered by the
eSpeed(sm) trading system. Designed to bring marketplace efficiency to
the energy markets, TradeSpark will be fully operational on October
2nd, employing approximately 50 personnel with access to eSpeed's
electronic trading platform. Shortly following the launch, TradeSpark
will offer three possible points of access to one pool of liquidity -
over the Internet, through eSpeed's private network and through
TradeSpark voice brokers.
Fry added, "We provide an end-to-end marketplace and trading
solution that includes real-time and auction-based transaction
processing, risk management tools and back-end processing systems. In
short, TradeSpark makes it possible to execute transactions
instantaneously, more effectively and all in a marketplace that is
neutral."
The potential value of electronic energy market trading volumes is
in the multi-billion dollar range. Forrester Research predicts that by
2004, online sales of natural gas will reach $166 billion,
representing 25 percent of all natural gas sales. Forrester projects
online sales of electricity reaching $101 billion by 2004, an 11
percent share of all electricity sales. During the last 12 months the
partners forming TradeSpark, together with Dynegy and Entergy,
estimate that they traded approximately 34.5 billion cubic feet of
natural gas per day and 467 million megawatt hours of electricity. For
the last quarter 2000, the TradeSpark partners, together with Dynegy
and Entergy, estimate they together traded roughly 20 percent of all
gas and power in North America.
eSpeed utilizes one of the most robust network distribution
systems available today to provide customers with accurate market
information and instantaneous trade execution. The proprietary
transaction processing software is scalable to easily accommodate
additional trading instruments and commodities. Its systems currently
trade $150 billion per day in transactions, using only 12 percent of
system capacity.
Today's announcement comes three months after eSpeed, Inc., Dynegy
and Williams Energy Services closed a deal where the three companies
agreed to develop electronic marketplaces. As part of the same deal,
Dynegy and Williams each purchased a $25 million equity stake in
eSpeed, Inc.
Editors' Note:
The following quotations regarding this announcement are from
executives representing the companies forming TradeSpark, LP as well
as TradeSpark participants Dynegy and Entergy:
Debbie Wernet, Coral President North America Trading said,
"TradeSpark creates a dynamic energy marketplace featuring liquidity,
a strong technological platform, and accomplished brokerage
experience. Coral's participation in TradeSpark directly supports our
moves into e-commerce and aligns us with a leader in tomorrow's energy
trading market."
Paul Koonce, Senior Vice President, Dominion
"TradeSpark participants receive the benefit of an unparalleled
combination of liquidity, technology and marketplace expertise. All
TradeSpark customers will be provided with the same superb service in
a marketplace developed by actual marketplace participants. Since
TradeSpark is a multi-dealer marketplace and acts only as agent in
transactions, it offers the structure of a completely neutral
marketplace. We believe that this partnership and its creation of a
remarkably fast, fair and efficient marketplace will enable us to
continue to expand our ability to broker our low cost BTU's in our
region of focus- the energy intensive Mid-West, Northeast and Mid
Atlantic regions. The development of this marketplace will allow
Dominion to realize substantial scale without the hassle of adding
hundreds of staff. This marketplace and our plans for growth are timed
very well."
Matt Schatzman, President of Energy Trading for Dynegy Inc.
"The most exciting part of the TradeSpark marketplace is that it
leverages a proven, working world-class technology that already
exists. The liquidity that Dynegy and the other companies create
through their participation firmly establishes TradeSpark as a robust,
neutral electronic marketplace that will provide customers with
accurate market information and instantaneous trade execution at a
lower cost than traditional trading methods. TradeSpark's technology,
scalability and infrastructure will make it a leading electronic
source for B2B e-commerce in the energy industry."
Frederick T. Varacchi, President of eSpeed
"As B2B marketplaces become increasingly large, they demand a
trading platform that is neutral, fast, scalable and based on the
leading technology in the industry. That's what eSpeed offers and
we're excited about powering the world's most comprehensive energy
marketplace. TradeSpark further demonstrates how the eSpeed system can
power the largest, fastest and most liquid marketplaces in the world.
eSpeed's unrivalled, proprietary, `built-and-paid-for' marketplace
technology, combined with a select group of the most advanced energy
companies in the world, position TradeSpark to lead the way in energy
trading."
David Sobotka, President Koch Energy Trading:
"TradeSpark is a great step forward in the evolution of electronic
trading in our industry. As a neutral marketplace with proven
technology that is backed by some of our industry's key players, it's
well-positioned to successfully serve customers in these markets. For
Koch Energy Trading and its proposed joint venture partner Entergy
Power Marketing, this is also an affirmation that we'll continue to be
a leader in shaping the e-exchange activity of our industry".
V.J. Horgan, President of TXU Energy Trading
"It's critical for key industry players to accelerate an
electronic exchange because efficiency is vital to expanding the
market. TradeSpark offers superior technology, a neutral platform, and
speed to market. We expect this partnership to contribute to greater
market transparency and liquidity." Continuing, Horgan added "Joining
this exchange accelerates TXU's commitment to step up its presence in
the energy trading industry."
Bill Hobbs, President of Williams Energy Marketing & Trading
"The introduction of TradeSpark, LP is a major step forward in
providing the energy industry with a neutral and liquid marketplace to
transact business. Our role in TradeSpark, LP confirms Williams
commitment to maximize the efficiency that eBusiness presents to the
energy industry. This is yet another step in the execution of our
eBusiness strategy that will firmly establish Williams as a leader in
energy technology and ultimately offer a great value for our customers
and shareholders."
INFORMATION ON TRADESPARK, LP PARTNERS AND PARTICIPANTS
About Coral Energy
Coral Energy, an affiliate of Shell, is a leading North American
wholesale energy marketing and trading company based in Houston with
offices throughout the United States, Canada and Mexico. Coral's sales
volumes in the second quarter 2000 ranked in the top five in gas (9.4
billion cubic feet per day) and in the top 20 in power (7.4 million
megawatt hours). Coral and its affiliate companies also are engaged in
energy management services, natural gas transportation and storage,
and power generation. Additional information is available at
www.coral-energy.com.
About Dominion
Dominion has an energy portfolio of nearly 20,000 megawatts of
electric generation; the largest underground natural gas storage
system in North America; 6,000 miles of electric transmission lines;
7,600 miles of gas pipelines; and 3.8 million gas and electric utility
customers in the Midwest, Northeast and Mid-Atlantic regions. Dominion
is also one of the dozen largest independent oil and natural gas
exploration and production companies in North America, with 2.8
trillion cubic feet of reserves. For more information about Dominion,
visit the Internet at www.dom.com.
About Dynegy Inc.
Dynegy Inc. is a leading provider of energy and communications
solutions to customers in North America, the United Kingdom and
Europe. The company's leadership position extends across the entire
convergence value chain, from power generation to wholesale and retail
marketing and trading of power, gas, coal, emission allowances, and
weather derivatives to transportation, gathering and processing. For
more information on Dynegy visit www.Dynegy.com
About eSpeed, Inc.
eSpeed, Inc. (Nasdaq: ESPD) operates multiple buyer/multiple
seller real-time B2B electronic marketplaces. eSpeed's suite of
marketplace tools provides end-to-end transaction solutions for the
purchase and sale of products via the Internet or over eSpeed's global
private network. eSpeed currently provides the marketplace
infrastructure for most of the worlds fixed income marketplaces,
transacting over $150 billion of financial instruments daily. eSpeed
is headquartered in New York. Additional information on eSpeed is
available via the Internet at espeed.com.
About Koch Energy Trading, Entergy Corp., and the Entergy-Koch
venture
Houston-based Koch Energy Trading, Inc. (KET), a leader in trading
and marketing natural gas, power and weather risk-management products,
is currently an affiliate of Koch Industries, Inc. Koch Industries and
its subsidiaries are involved in oil and gas, as well as in chemicals,
plastics, industrial equipment, asphalt products, metals and mineral
services, ranching, financial services, and ventures. In April, Koch
and Entergy - the third-largest U.S. generator of electric power with
the nation's largest natural gas-fired generating fleet - announced
plans to form Entergy-Koch L.P., a new company that will be among the
nation's top ten energy commodity traders. The $1 billion new company
will include the capabilities of KET. More information on Koch is
available at www.kochind.com, and more information about Entergy is
available at www.entergy.com.
About TXU
Dallas based TXU is a multinational leader in electric and natural
gas services, merchant trading, energy marketing, telecommunications
and other energy-related services. TXU is one of the largest
investor-owned energy services companies in the world with more than
$18 billion in revenue and more than $40 billion in assets. TXU has
30,000 megawatts of power generation and sells 250 million megawatt
hours of electricity and 2 trillion cubic feet of natural gas
annually. TXU delivers energy to 11 million customers primarily in
Texas, the United Kingdom and continental Europe and Australia.
Company information is available at www.txu.com.
ABOUT WILLIAMS
Williams, through its subsidiaries, connects businesses to energy
and communications. The company delivers innovative, reliable products
and services through its extensive networks of energy-distributing
pipelines and high-speed fiber-optic cables, comprehensive energy
services, including commodity trading and risk management, and
business communications systems, international satellite and
fiber-optic video services. Based in Tulsa, Okla., Williams operates
about $25 billion in assets. Company information is available at
www.williams.com.
About Cantor Fitzgerald
Founded in 1945, Cantor Fitzgerald is a global financial services
firm, providing a broad spectrum of institutional brokerage and
execution services to the financial markets. Headquartered in New York
City, Cantor Fitzgerald currently employs more than 1,700 people in
offices throughout the U.S., Canada, Europe and Asia, serving the
world's largest banks and securities houses. For more information on
Cantor Fitzgerald visit cantor.com.
Statements contained in this Press Release which are not
historical facts are forward-looking statements, as the term is
defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties
which could cause actual results to differ materially from those
currently anticipated due to a number of factors, which include, but
are not limited to: the limited operating history of eSpeed, Inc., its
expected incurrence of future losses and negative cash flow from
operations for the foreseeable future, its ability to enter into
marketing and strategic alliances, to effectively manage its growth,
to expand the use of its electronic systems, and to induce customers
to use its marketplaces and services and other factors that are
discussed in each participant's Annual Report on Form 10-K filed with
the Securities and Exchange Commission.
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CONTACT: TradeSpark, LP:
Suria Clarke, 212/704-8252, suria_clarke@edelman.com
or
eSpeed, Inc. and Cantor Fitzgerald:
Chris Staszak, 212/938-3712, cstaszak@espeed.com
or
Coral Energy:
Jimmy Fox, 713/230-3594, jfox@coral-energy.com
or
Dominion:
Hunter Applewhite, 804/819-2043,
hunter_applewhite@dom.com
or
Dynegy Inc.:
John Sousa, 713/507-3936, joso@dynegy.com
or
Koch Industries, Inc.:
Mary Beth Jarvis, 316/828-3756, jarvism@kochind.com
or
TXU:
Chris Schein, 214/812-5338, cshein1@txu.com
or
The Williams Company:
Paula Hall-Collins, 918/573-3332,
paula.hall-collins@williams.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET SOFTWARE
MARKETING AGREEMENTS
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