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Nodal Newsletter | August 2021

Nodal Highlights

ENERGY RISK AWARD 2021

Nodal Exchange has been named Exchange of the Year for the third year in a row by Energy Risk Magazine. Thank you to our trading and clearing community for your tremendous support through the years! Read full article

SINGLE-DAY VOLUME RECORD

On August 3rd, 2021, Nodal Exchange posted a single-day volume record in its environmental market product suite with 6,687 contracts traded. A single-day record of 6,105 Regional Greenhouse Gas Initiative (RGGI) futures and options (equal to more than 6.1 million CO2 allowances) led all contracts.

NODAL ENVIRONMENTAL MARKETS CONTINUE TO GROW

  • In July 2021, 10,684 contracts traded on Nodal, up 57% from last July.
  • Year-To-Date environmental volume stands at 117,327 contracts, up 85% from 63,581 in 2020.
  • Volumes from REC contracts on Nodal continue to drive volume growth with 8,998 contracts traded in July, up 37% from 6,540 last July.
  • REC open interest reached 121,138 contracts in July, up 117% from 55,738 and topped 20% market share for the first time.

NODAL CLEAR’S NEW WEBSITE

Nodal Clear launched its new website in June. Please visit nodalclear.com


Nodal environmental markets continue to grow

Nodal Exchange environmental futures volume in July 2021 rose 57% to 10,684 lots, up from 6,795 lots last July. This continues the strong performance we saw in Q2 2021 Nodal’s environmental futures volume grew 156% over Q2 2020. Environmental futures open interest at the end of June 2021 was at 133,121 lots, up 85% from the prior year.

Nodal, which is particularly strong in Renewable Energy Credits (RECs), saw volumes in Q2 across the 56 REC futures and options contracts on Nodal rise to 39,862 contracts, up 154% from 15,713 in Q2 2020 and open interest across the REC suite rise to 125,214 contracts, up 118% from 57,398 in Q2 2020. Nodal open interest in its REC contracts reached 121,138 contracts in July, up 117% from 55,738 the year prior and reached 20% market share for the first time.

Within the REC group, Texas Compliance RECs from CRS Eligible Listed Facilities (Texas CRS Wind and Texas CRS Solar) continue to shine. Open interest in Texas CRS Wind and Texas CRS Solar contracts surpassed 20,000 contracts.  Both, listed only on Nodal Exchange, are the most successful voluntary renewable energy certificate (REC) contracts listed. Since their launch, Texas CRS Wind and Solar contracts have traded more than 43,000 contracts (equal to 43 million MWh of renewable energy).

“Nodal, in collaboration with IncubEx, continues to expand its environmental offering and introduced new nitrogen oxides (NOx) futures and options and extended vintages on two Texas voluntary renewable energy certificate (REC) contracts this summer, further expanding the broadest suite of environmental markets contracts in the world. Nodal Exchange is proud to see continued growth in our environmental futures markets and very much appreciates the support of our trading and clearing community,” said Paul Cusenza, Chairman and CEO of Nodal Exchange.

Nodal Clear has a new website!

Nodal Clear is a clearing house providing central counterparty clearing services for Nodal Exchange and FairX. Nodal Clear’s strong risk management practices create a sound market infrastructure for trading. Nodal Clear employs a tailored portfolio margining methodology that appropriately margins all contracts and provides capital efficiencies to market participants. Visit our new website: nodalclear.com

Upcoming Events

October 4-6
NAEMA FALL CONFERENCE: Nodal Exchange will be sponsoring the NAEMA Fall conference on October 4-6, 2021 For more information visit: Naema Fall Conference
October 18-20
WSPP FALL CONFERENCE: Nodal Exchange will be sponsoring the WSPP Fall conference on October 18-20, 2021. For more information visit: WSPP Fall Conference
October 21-22
NODAL TRADER CONFERENCE: Nodal Exchange will be sponsoring and attending the Nodal Trader Conference in New York City on October 21-22, 2021. Our CEO, Paul Cusenza will also be chairing this event. For more information visit: Nodal Trader Conference

Nodal in the news

July 2021

Nodal Exchange named Exchange of the Year for third year in a row

Learn more
July 2021

Nodal Exchange achieves records in power and environmental futures

Learn more
June 2021

Nodal and IncubEx Expand Environmental Suite

Learn more

About Nodal

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. 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, environmental, and trucking freight 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.

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