NOCC acts as a riskless principal whereby buyers and sellers deal directly with NOCC and not through Futures Commission Merchants (FCM's).
NOCC utilizes a set of standard Base Agreements with all the participating entities that transact through the NOCC solution. The NOCC Base Agreements in conjunction with the NOCC Credit and Risk Management Policies and Procedures makeup the NOCC Master Agreement (NMA). The NMA outlines the terms and conditions for conducting business with NOCC. The foundation of NMA is the following Base Agreements:
- ISDA with a gas and power annex and WSPP Addendum
- NAESB and/or EEI enabling agreements
- WSPP Master Confirmation Agreement (for those customers that are required to operate under the WSPP agreement for WECC transactions)
Regardless of what Base Agreement is used; all NOCC customers are bound by the Credit and Risk Management Policies and Procedures which dictate operating, collateral, and margin requirements.