The European Energy Exchange (EEX) and the owners of US-based Nodal Exchange Holdings, LLC have reached an agreement under which EEX will acquire 100% of the equity in Nodal Exchange for a low triple digit million US-Dollar investment. As a result, Nodal Exchange will become part of EEX Group.
Nodal Exchange, headquartered in Virginia, is a regulated futures exchange which offers a variety of electricity and natural gas contracts to hedge against price risks in the United States. All of the transactions on Nodal Exchange are cleared through its clearinghouse, Nodal Clear, a derivatives clearing organization under the Commodity Exchange Act that is regulated by the U.S. Commodity Futures Trading Commission (CFTC).
Through this acquisition, EEX Group will enter the North American energy trading markets, thereby expanding its global presence and membership base in line with its growth strategy.
“EEX Group has enjoyed continued growth in the last few years. In order to facilitate further success, we will continue to improve our customers’ trading experience in addition to expanding our business, both in terms of product innovation and geographical reach. Our ultimate ambition for EEX Group is to become a truly global commodity exchange. In this context, the acquisition of Nodal Exchange is a major milestone”, says Peter Reitz, Chief Executive Officer of EEX.
“Nodal Exchange grew its North American power trading volumes 97% in 2016 and we are keen to continue our growth. With its track record in European energy markets, EEX Group is well positioned to contribute to our further development and provide us the opportunity to expand into new products, regions and jurisdictions. I am excited for the opportunity to continue to lead Nodal Exchange as part of the EEX Group”, says Paul Cusenza, Chairman and CEO of Nodal Exchange.
Nodal Exchange will continue to build further on its excellent market position in the US power markets. The companies share a common strategy and philosophy. By joining forces, the partners also intend to grow additional asset classes such as the US natural gas business and provide market participants with access to a global trading network for energy products. The closing of the agreement is subject to certain approvals and notifications, particularly with US authorities, and other customary closing conditions. Closing of the transaction is therefore expected in the second quarter of 2017.
About EEX Group
EEX Group provides the central market platform for energy and commodity products. The Group offering comprises contracts for Power, Natural Gas, Coal, Oil, Environmental Products, Freight, Metals and Agricultural Markets. The European Energy Exchange (EEX), EPEX SPOT, Powernext, CLTX, Gaspoint Nordic and Power Exchange Central Europe (PXE) are part of EEX Group. Clearing and settlement of transactions concluded or registered on the exchanges is provided by the central clearing house of the Group, European Commodity Clearing (ECC). More information: www.eex-group.com
About Nodal Exchange, LLC
Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American energy markets. Nodal Exchange is a leader in innovation, having introduced the world’s largest set of electric power locational (nodal) futures contracts. Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis risk management available to market participants. In addition, Nodal Exchange offers a Henry Hub natural gas contract providing cross-margining benefits with participant’s power portfolios. All Nodal Exchange contracts are cleared by Nodal Clear which is a CFTC registered derivatives clearing organization. Nodal Exchange is a designated contract market regulated by the CFTC. More information: nodalexchange.com
EEX Public Relation
Phone: 49 341 21 56 – 300 (Leipzig)
Phone: +44 20 7862 7568 (London)