EnergyClear hires senior risk officer

EnergyClear Corporation (ECC) has hired Holly Arney as senior vice-president of risk management. ECC, a Houston-based, not-for-profit, industry-owned and sponsored clearing house, aims to provide comparison, netting and settlement of over-the-counter energy contracts.

Arney joins ECC from Houston-based Reliant Energy, where she was commercial technology representative responsible for developing corporate strategy for electronic confirmations, clearing and settlement. Arney's experience also includes emerging trade technology, margining reduction, regulatory risk, energy derivatives, mergers and acquisitions, and contract negotiation.

"Given the unprecedented liquidity challenges and turmoil that have characterised the energy industry lately, I am excited about working with EnergyClear as it moves to clear and guarantee energy trades, and contributes to the creation of a more secure and dynamic market,” Arney said.

ECC plans to launch clearing for 10 US electricity contracts and 20 US natural gas contracts by the end of the month. Although it was set up in late 2000, with the aim of launching by the second quarter of 2001, the company found it hard to convince energy traders they needed to address credit risk concerns in what was then a prosperous market. Companies choosing to join EEC as clearing members will have to pay an initial fee of $2.5 million.