NODAL POWER HIGHLIGHTS
- Nodal set a calendar month trading record in power futures with traded volume of 179 TWh, up 39% from July 2022.
- Open interest at the end of July 2023 for power futures was 1.261 billion MWh, representing $111 billion of notional value based on both sides.
NODAL ENVIRONMENTAL HIGHLIGHTS
- Open Interest in environmental markets at the end of July 2023 was 242,344 lots, up 27% from a year earlier.
- Nodal successfully launched Washington Carbon Allowance (WCA) Vintage Specific futures and Washington Clean Fuels Program (CFP) futures contracts.
Nodal achieves record volume in power and record open interest in environmental in July 2023
Nodal Exchange announced significant growth in power and environmental futures in July 2023. Nodal achieved a calendar month record for July with power futures volume of 179 TWh, up 39% from July 2022. The majority of U.S. power futures open interest is on Nodal Exchange with 1.261 billion MWh representing $111 billion of notional value based on both sides as of the end of July 2023.
Nodal also saw strong performance in its environmental products. Open interest (OI) during the month hit a record open interest of 282,151 lots. Environmental markets on Nodal ended July at 242,344 lots, up 27% from 191,223 lots a year earlier. July also marked the largest delivery month ever for environmental markets, with more than 40,000 lots delivered. Deliveries massively topped the prior record of 17,843 lots delivered in July 2022.
Nodal Exchange launched the first-ever Washington Carbon Allowance Vintage Specific and Washington Clean Fuels Program futures contracts in collaboration with IncubEx
Nodal Exchange and IncubEx successfully launched Washington Carbon Allowance (WCA) Vintage Specific futures and Washington Clean Fuels Program (CFP) futures contracts, two first-of-their-kind listed contracts, on August 11, 2023.
The Washington CFP futures contract physically delivers credits issued by the Washington Department of Ecology via the Washington Fuel Reporting System Credit Bank and Transfer System (WFRS-CBTS). Washington launched its Clean Fuel Standard on January 1, 2023, as the third state (after California and Oregon) to implement a market-based GHG emissions reduction program for transportation fuels, setting an emissions reduction target of 20% (based on 2017 levels) by 2034. These new contracts will extend Nodal’s offering which currently includes the only physically-delivered renewable fuels contracts on California’s Low Carbon Fuel Standard and Oregon’s Clean Fuels Program.
Nodal in the news
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 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.