Market Design

Nodal Exchange auctions offer power contracts in the ISO-NE, NYISO, PJM, MISO, CAISO and ERCOT markets, as well as a Henry Hub natural gas contract. Contracts at commercially significant hubs, zones, and nodes in these designated markets are available for trading on Nodal Exchange's auction and cleared block trade platforms.

Nodal Exchange conducts one auction per business day, with bids due by 11:00 AM EPT and results normally posted by 11:45 AM EPT. Participants have significant flexibility in the types of auction order structures they submit on the over 70,000 available expiries. The Nodal Exchange auction engine matching algorithm has been designed to economically optimize the system, and can match the components of spread and aggregate orders with components of other orders increasing liquidity. As all auction trades are cleared by LCH.Clearnet, counterparty credit risk issues are effectively mitigated.

Nodal Exchange also has a cleared block trade platform. Brokers and participants can submit negotiated trades composed of Nodal Exchange contracts to this platform for clearing through LCH.Clearnet. Both power and natural gas contracts are available on the cleared block trade platform.