Just one short year ago, Nodal Exchange created a subsidiary called Nodal Clear and filed to be registered with the Commodity Futures Trading Commission as a derivatives clearing organization. We are very pleased with the Oct. 19 transition of clearing Nodal Exchange futures contracts to Nodal Clear.
LCH.Clearnet is about to take another big hit from the US energy sector. Power futures exchange, the Nodal Exchange, recently received CFTC approval to operate its own DCO. So, out goes LCH, in comes Nodal Clear.
Risk exists in business. How effectively risks are managed greatly impacts the performance of the business. In businesses dependent on commodities (eg, cocoa, corn, wheat, gold, oil, electric power), price risk is a critical factor.