Dawn serves as a gathering point for 15 adjacent storage pools in Canada west of Port Huron , Michigan . Dawn storage is owned and operated by Union Gas Limited, a distributor serving Ontario. Dawn is interconnected with TransCanada Pipeline.

The settlement price for basis swap futures contracts is based on the Platts Inside FERC’s Gas Market Report (“Platts IFERC”) Dawn, Ontario Index (“Index”) published in the table titled “Market Center Spot Gas Prices” in the first regular issue of the contract month minus the NYMEX natural gas futures contract final settlement price for the corresponding contract month.

The index swap futures contract floating price for each contract month is equal to the differential between the average of Platts Gas Daily prices during the contract month and the first of the month price provided by Platts Inside FERC’s Gas Market Report for this location point. This is a synthetic spread similar to the basis swaps.

Swing swap futures contracts help market participants manage their price risk with greater precision. The contract is financially settled daily on the Platts Gas Daily midpoint price for this location in the table titled “Daily Price Survey.”

All positions are aggregated and margined according to the value at risk as calculated by the SPAN® system. Cross margining of offsetting positions across markets can result in reduced margin obligations.