WASHINGTON DC, September 8, 2023
Nodal Exchange announced new trading records in power and environmental futures in August 2023. In power, Nodal set a calendar month record for August with 168 million MWh of traded power futures volume in the month, up 61% from the prior year. Nodal continues to be the market leader in North American power futures having the majority of the open interest with over 1.2 billion MWh.
Environmental markets on Nodal Exchange posted record August volume and the second highest trading month ever on the exchange. Total volume for August was 36,495 lots, up 92% from 19,001 lots a year earlier, with open interest ending the month at 262,680 lots, up 32.8% from 197,870 a year earlier.
Several contract groups bolstered volume and open interest over the month. Renewable energy certificates (RECs) contracts as a group posted volume of 21,142 lots for the month, up 17% from 18,066 lots a year earlier. Open interest across REC products ended the month at 215,552 lots, up 32% from 163,682 lots.
Across the REC registries:
- NEPOOL-related REC open interest hit 43,057 contracts in August, up 110% from 20,500 a year earlier;
- PJM open interest ended the month at 113,851 contracts, up 11% from 102,601 a year earlier; and
- Texas CRS wind and solar REC open interest hit another new record of 54,904 lots, ending the month at 54,358 lots, up 43% from 37,987 lots a year earlier.
Other milestones included the first trades in:
- National CRS Listed Wind Renewable Energy Certificate (REC) futures and
- Washington Vintage Specific futures, launched on August 11th along with Washington Clean Fuels Program futures
In renewable fuels, physically-delivered California Low Carbon Fuel Credit (LCFS) futures posted volume of 7,500 lots in August, with open interest rising to 13,850 lots, an increase of 1104% from a year earlier.
Nodal, in collaboration with IncubEx, offers the world’s largest suite of environmental products.
“Nodal Exchange is proud to have achieved these new records in power and environmental markets and appreciates the support of its community. With extreme weather conditions becoming more prevalent, environmental and power contracts are even more important to manage the associated risks and we will continue to seek to meet the market needs by expanding what are already the world’s largest sets of power and environmental futures and options contracts,” said Paul Cusenza, Chairman and CEO of Nodal Exchange and Nodal Clear.
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.