WASHINGTON & LONDON, September 27, 2013
Nodal Exchange, LLC (Nodal Exchange) announced today that the U.S. Commodity Futures Trading Commission (CFTC) has approved its application to be registered as a Designated Contract Market (DCM). The application was filed on October 11, 2012. Nodal Exchange will begin operation as a DCM effective on September 30, 2013.
“The DCM designation is an important milestone for Nodal Exchange and its trading and clearing community,” said Paul Cusenza, Chairman and Chief Executive Officer of Nodal Exchange. “Nodal Exchange has become a significant part of the North American power market, providing the most granular and diverse set of locations for cleared power contracts. Nodal Exchange, through these more granular contracts, better meets the hedging needs of the power markets and is aiding in moving the bilateral non cleared contracts to the cleared market consistent with the goals of the G-20 countries and the Dodd-Frank Act.”
Nodal Exchange, which launched its trading platform on April 8, 2009 operating as an exempt commercial market, is the first commodities exchange dedicated to offering locational (nodal) futures contracts and related services to participants in the organized North American electric power markets. Nodal Exchange has grown significantly, obtaining a market share of over 25% of all cleared North American power futures contracts, measured by open interest, as of August 31, 2013. Nodal Exchange’s success is due to its many innovations, and, in particular, to its granular contract offering, which allows its customers to create more effective hedges. Nodal Exchange is the leading futures market for power basis trading with over 50% market share of zonal open interest, and a 100% market share of nodal open interest. Nodal Exchange’s growth continues, with year-to-date trading volume double the same period of 2012.
About Nodal Exchange, LLC
Nodal Exchange is the first commodities exchange dedicated to offering locational (nodal) futures contracts and related services to participants in the organized North American electric power markets. Nodal Exchange offers contracts for both power and natural gas. Nodal Exchange builds on the success of the existing Regional Transmission Organization/Independent System Operator (RTO/ISO) Day Ahead and Real Time markets by offering cash-settled futures contracts in a cleared market enabling Nodal Exchange participants to effectively manage basis and credit risk. Nodal Exchange offers over 1,000 contracts on hundreds of unique locations in the RTO/ISO markets. Nodal Exchange is a designated contract market regulated by the CFTC with all contracts cleared by LCH.Clearnet Ltd. Nodal Exchange is an independent, privately held company. For more information, visit nodalexchange.com.