At the end of 2016, Nodal Exchange and its relatively new wholly owned subsidiary, Nodal Clear, was a stand-alone company – a rare example of a successful start-up exchange and clearinghouse. Nodal grew to be about 30 percent of the power futures open interest in the United States in a highly competitive environment.
If a product is going somewhere in the U.S., 7 out of 10 times it is getting there on a truck. Further, according to the American Trucking Association, over 80% of the nation’s nearly $900-billion freight bill became revenue for the trucking industry. That means the trucking industry has a market size of $726B, making it one of the larger industries in the US. This begs the question: if these other industries has correlated futures markets, why doesn’t trucking? Some futures have been around since the 1800s, yet trucking, an integral part of nearly every industry, has been largely neglected.
Founded with the purpose of addressing volatility for brokers, carriers and shippers in major shipping lanes through risk-management solutions, TransRisk is one step closer to doing just that. The company, along with DAT Solutions and Nodal Exchange jointly announced an agreement to develop, market and list the first and only trucking freight futures and options on futures contracts.
After over 120 entries have been reviewed, the FOW International Awards shortlist has been released. The winners will be unveiled at a Gala Dinner in London on 7 December at which Icap group chief executive Michael Spencer will receive the lifetime achievement award. Nodal Exchange has been shortlisted for Exchange of the Year – US and Canada.
And right on schedule, too. Last time we spoke to Nodal Exchange chief Paul Cusenza, he discussed the firm’s surprise transaction with the European Energy Exchange (EEX) – the deal formally closed last month – and his plans to launch a whole new basket of options contracts in power and gas.
In a late 2016 interview with Nodal Exchange, we discussed many things with CEO Paul Cusenza. New products and services he was planning to launch, growth and international expansion opportunities and so on. Clearly, we should have hit him with a few more questions.
Vertical exchange silos are an oft-maligned feature of the financial markets. Critics argue such models, where an exchange controls both trade execution and clearing, can be anti-competitive and result in higher costs for end-users. Nodal Exchange is proving that vertical integration has plenty of benefits for customers, too.