Washington, DC, July 7, 2022
Nodal Exchange today announced new trading records in power and environmental futures as of end of June 2022. Nodal achieved record half year power volume for the first half of 2022 with 1.489 billion MWh traded, up 39% from H1 2021. Nodal also set a new calendar month record for June with 175.3 million MWh of traded power futures volume in the month. The majority of U.S. power futures open interest is on Nodal Exchange with 1.183 billion MWh representing $154 billion of notional value based on both sides as of the end of June 2022.
Nodal also posted strong growth in volumes and open interest in the environmental market suite of products in June. Total June volume for Nodal environmental products was 20,669 lots, up 26% from 16,376 lots a year earlier. Total volume in Q2 2022 was 72,205 lots, up 49% from 48,578 lots in Q2 2021. And in H1 2022, volume totaled 136,435 lots, up 28% from 106,643 lots for the same period a year earlier. Nodal environmental open interest at the end of June 2022 was 203,669 contracts, up 53% from 133,271 a year earlier.
Some key environmental sectors showed notable open interest gains in June, including:
- PJM-based REC contracts ended June at 114,784 lots of open interest, up 29% from 88,807 lots a year earlier
- RGGI futures ended June at 24,532 lots of open interest, up 480% from 4,227 lots a year earlier
- June open interest in Texas CRS wind and solar RECs matched May’s record of 34,757 contracts, representing 34.7 million MWh of wind and solar power or enough clean electricity to power 3.1 million homes for a year.
Nodal Exchange, in collaboration with IncubEx, launched several new environmental contracts in June, including:
- Verified Emission Reduction (VER) Futures & Options: Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) eligible and nature-based credits
- Certified Emission Reduction (CER) Futures: Commitment Period 2; 2013+; and 2016+
- Global Emission Reduction (GER)® Futures, developed by Net Zero Markets
- Carbon Removal Futures
- Renewable Natural Gas Certificate Futures
- NEPOOL Quad Qualified Renewable Energy Certificate Class 1 Futures
- Western Regional Energy Generation Information System (WREGIS) Registered Renewable Energy Certificates from Center for Resource Solutions (CRS) Listed Wind Energy Facilities front-half and back-half Futures
In June, the VER Nature Based Offset futures and the California Product Content Category 3 REC futures traded on Nodal Exchange for the first time. This new environmental product launch is part of Nodal’s continued commitment to a sustainable future.
“Nodal Exchange is proud to serve these markets, and we are very pleased to see them continue to grow,” said Paul Cusenza, Chairman and CEO of Nodal Exchange and Nodal Clear. “As the year progresses, we look forward to continuing to develop and offer innovative products that meet the evolving needs of our markets.”
Nodal Exchange Public Relations
Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American commodities markets. Nodal Exchange is a leader in innovation, having introduced the world’s largest set of electric power locational (nodal) futures contracts and the world’s largest set of environmental contracts. As part of EEX Group, a group of companies serving international commodity markets, 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 natural gas and environmental contracts. 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.