Frequently Asked Questions

1. What is needed for my organization to qualify to be a participant on Nodal Exchange?
   Answer: To participate on Nodal Exchange, your company must sign the Nodal Exchange Participant Agreement, and have an account with a General Clearing Member who is a member of LCH.Clearnet and Nodal Exchange. All Participants must be Eligible Commercial Entities, as defined by the U.S. Commodity Futures Trading Commission (CFTC).
2. How are Nodal Exchange contracts margined?
   Answer: Both initial and variation margin apply to Nodal Exchange contracts. LCH.Clearnet calculate initial margin based on a Value at Risk (VaR) methodology. The white paper Clearing and Margining on Nodal Exchange: An Overview contains more detail on margining.
3. Do I have to be a member of LCH.Clearnet to participate on Nodal Exchange?
   Answer: No, you do not. You must have an account with a General Clearing Member (GCM) that is a member of both LCH.Clearnet and Nodal Exchange to participate on Nodal Exchange. If you are interested in also becoming a member of LCH.Clearnet, please contact their membership department at .
4. How do I get a copy of the Participant Agreement and Rules?
   Answer: These documents are available on our website. Click here
5. How many auctions does Nodal Exchange have per month?
   Answer: Currently, Nodal Exchange has one auction per business day.
6. How do Nodal Exchange contracts settle?
   Answer: Nodal Exchange contracts are all financially settled. Currently, contracts are available at all locations with settlement against the Day Ahead Locational Marginal Price (LMP) as posted by the RTOs. Additionally, contracts settling against Real Time LMP are available on four select locations: PJM Western Hub, PJM AEP-Dayton Hub, PJM Northern Illinois Hub, and MISO Cinergy Hub.
7. How did Nodal Exchange select which nodes to offer?
   Answer: Nodal Exchange selected nodes and defined contracts with the objective of representing all commercially significant nodes in PJM, MISO, NYISO, and ISO-NE. Nodes which have shown very high historical price correlations have been grouped into single contracts. Currently, Nodal Exchange does not offer contracts on any individual load nodes, but does offer contracts on load zones.For CAISO, Nodal Exchange selected commercially significant hubs, zones and pricing points as well as select generation nodes. Not all generation nodes in CAISO are currently represented in Nodal Exchange contracts
8. What types of transactions can be submitted to Nodal Exchange for clearing?
   Answer: Privately negotiated transactions based on Nodal Exchange contracts can be submitted to Nodal Exchange for clearing. These bilateral transactions can either be submitted by the parties to the transaction or by a broker. Note, all auction awarded contracts are cleared as well.
9. Will Nodal Exchange offer options?
   Answer: At this time, Nodal Exchange only offers futures contracts.
10. Are there any systems/browser requirements for participating on Nodal Exchange?
    Answer: Connectivity to Nodal Exchange is via a web-based browser interface. Nodal Exchange supports recent releases of Internet Explorer and Firefox.
11. Is automated upload supported?
    Answer: Nodal Exchange supports a bulk order upload feature for orders formatted to our XML schema, as well as an automated CSV upload file format upload that can be generated from an Excel spreadsheet. Click here for more information.