FREQUENTLY ASKED QUESTIONS

What is needed for my organization to qualify to be a participant on Nodal Exchange?

To participate on Nodal Exchange, your company must complete a Participant Application, sign the Nodal Exchange Participant Agreement, and have an account with a clearing member of Nodal Clear. Please review Sections 3.3 and 3.4 of the Nodal Exchange Rulebook for additional criteria for becoming a participant on Nodal Exchange.

Do I have to be a member of Nodal Clear to participate on Nodal Exchange?

No, you do not need to be a direct member of Nodal Clear. However, Nodal Exchange Participants not clearing for themselves must have an account with an FCM clearing member of Nodal Clear. A list of FCM clearing members for Nodal Clear can be found here.

How do I get a copy of the Participant Agreement and Exchange Rules?

These documents are available on our website. Click here

How do I get a copy of the Clearing House Rules?

This document is available on our website. Click here

When does Nodal Exchange hold auctions?

Nodal Exchange is not conducting auctions at this time.

How do Nodal Exchange futures contracts settle?

All Nodal Exchange contracts are financially settled. Nodal Exchange power contracts can settle against the ISO Day Ahead Locational Marginal Price (LMP), the ISO Real Time LMP, the ISO energy component of either Day Ahead or Real Time LMP, or the ISO Energy + Congestion component of Day Ahead LMP.  For the Mid-C power contract, the final settlement price for each contract month shall be equal to the final settlement price as reported by the Intercontinental Exchange (ICE Futures U.S.) for the Mid-Columbia peak (contract symbol: MDC) or off-peak (contract symbol: OMC) contract as appropriate for 11 years forward.  For the Henry Hub natural gas contract, the final settlement price is a price in US Dollars per MMBtu equal to the monthly last settlement price for natural gas as published by the CME Group’s New York Mercantile Exchange (NYMEX) for the month of production. Should the NYMEX monthly last settlement price be unavailable, the final settlement price will be equal to the final settlement price of the Intercontinental Exchange (ICE) Henry Financial LD1 Fixed Price contract as published by ICE for the month.

How did Nodal Exchange select which nodes to offer?

Nodal Exchange selects nodes and defines contracts with the objective of providing participants the ability to trade all commercially significant nodes. If a desired node is not listed as currently available, a participant can request that it be added.

What types of transactions can be submitted to Nodal Exchange for clearing?

All transactions on Nodal Exchange are cleared. Block trades on Nodal Exchange contracts can be submitted to Nodal Exchange as block trades for clearing. These block trades can either be submitted by the participants to the trade or by their Authorized Broker.

Does Nodal Exchange offer options?

Yes. Nodal Exchange offers monthly options on the corresponding futures contracts 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 Options are European style options and are exercised into the underlying futures contracts on the last trading day.

Are there any systems/browser requirements for participating on Nodal Exchange?

Connectivity to Nodal Exchange is via a web-based browser interface. Nodal Exchange supports multiple releases of Internet Explorer, Firefox, and Google Chrome.

Is automated upload supported?

Orders can be uploaded on a bulk basis to Nodal LiveTrade. For instructions on how to upload orders, please contact Nodal Exchange Account Management at accountmanagement@nodalexchange.com or 703-962-9820.

What is the regulatory status of Nodal Exchange?

Nodal Exchange, LLC is a Designated Contract Market pursuant to the Commodity Exchange Act and is regulated by the U.S. Commodity Futures Trading Commission (CFTC).

What is the regulatory status of Nodal Clear?

Nodal Clear is a registered Derivatives Clearing Organization pursuant to the Commodity Exchange Act and is regulated by the U.S. Commodity Futures Trading Commission (CFTC).