Overview

Our Mission: To be the most trustworthy and effective cash-settled commodities exchange in the markets we serve enabling better risk reward management

There are thousands of distinct price locations (nodes) in the organized North American wholesale electric markets. Yet, until now, the complexity of the power markets and the associated technological sophistication of the systems required to serve them have prevented the development of adequate forward markets to supply liquidity and allow complete hedging of power portfolios.

Nodal Exchange is the first independent electronic commodities exchange dedicated to offering locational (nodal) futures contracts and related services to participants in the organized North American power markets. Nodal Exchange builds on the success of the existing Regional Transmission Organization (RTO/ISO) Day Ahead and Real Time markets by allowing its Participants to trade cash-settled, fully standardized futures contracts in a cleared market, enabling market Participants to effectively manage basis and credit risk. Nodal Exchange's auction and bilateral trade platforms, with LCH.Clearnet clearing, provide enhanced basis and credit risk management and generate the forward price transparency and transaction liquidity needed in the North American power markets.

Nodal Exchange offers two transaction platforms: the OTC bilateral trade platform, and the auction platform. The OTC bilateral trade platform allows Participants and brokers to submit negotiated transactions to Nodal Exchange for clearing. On the Nodal Exchange auction platform, Participants submit orders for matching by the auction engine and clearing through LCH.Clearnet. To facilitate market liquidity, the auction engine is capable of matching across a wide range of order types – including outright energy at a single location, spreads between locations or over time, and aggregates of time periods. In order to avoid counterparty risk, all auction transactions and Nodal Exchange bilateral trades are cleared by LCH.Clearnet.

Nodal Exchange offers on-peak and off-peak power contracts for the current month to prompt plus eleven months at commercially significant hubs, zones and nodes in the following organized electric markets: ISO-NE, NYISO, PJM, MISO and CAISO. Additionally, Nodal Exchange now offers a forward 48 months on the 88 locations (176 peak and off-peak contracts) available during the daily auctions.

In the future, Nodal Exchange intends to further expand its product offerings and also extend its platform to other market regions in the US and Canada, including ERCOT.