There are thousands of distinct locations (nodes) in the North American organized wholesale electric markets. Nodal Exchange is dedicated to offering locational (nodal) futures and options contracts services to participants in these markets. Nodal Exchange builds on the success of the existing Regional Transmission Organization / Independent System Operator (RTO / ISO) Day Ahead and Real Time markets by allowing its participants to trade cash-settled, fully standardized futures and options contracts in a cleared market, enabling market participants to effectively manage price, basis, and credit risk.
Nodal Exchange offers contracts for on-peak and off-peak power at commercially significant hubs, zones, and nodes in the following electric markets: ISO-NE, NYISO, PJM, MISO, ERCOT, SPP and CAISO, as well as Mid-C.
Futures contracts are for monthly terms for both peak and off-peak time periods. Contracts for select locations are available for more granular off-peak periods (e.g., 7×8 and 2×16). Contracts are available for settlement to Locational Marginal Price (LMP), Energy + Congestion, or Energy only prices as published by the RTOs/ISOs, creating flexibility for participants to hedge positions for LMP and its components of Energy, Congestion, and Loss as appropriate.
Monthly Options on the corresponding futures contracts are available for eight locations in ISO-NE, NYISO, PJM, MISO, ERCOT, and CAISO, as well as Mid-C. Calendar Year Options are available for PJM Western Hub and NYISO West.
Nodal Exchange also offers a Henry Hub natural gas contract.
Nodal Clear’s service, EnergyClear, coordinates the clearing and settlement of Nodal Exchange’s financially settled energy contracts.