header for 2021 march newsletter
Nodal Newsletter | December 2022

Nodal Highlights

NODAL POWER HIGHLIGHTS

  • 2022 is a record year for power trading volume on Nodal Exchange, reaching 2,202 TWh on November 21st and surpassing our prior calendar year record set in 2021 of 2,199 TWh.
  • Power futures traded volume was up 3% in November over October 2022 with 196 TWh traded.

NODAL ENVIRONMENTAL HIGHLIGHTS

  • Environmental markets volume on Nodal Exchange totaled 27,032 contracts across the product suite in November, up 15% from 23,522 a year earlier. Open interest hit a new record in November, ending the month at 220,383 contracts, up 33% from 166,236 a year earlier.
  • Texas CRS wind and solar futures and options on Nodal posted a record volume month of 12,290 contracts (the equivalent of 12.2 million MWh of renewable power), up 983% from 1,135 contracts traded a year earlier. Open interest in these voluntary REC contracts ended the month at a record 43,278, up 53% from 27,603 a year earlier.
  • Nodal Exchange and IncubEx announced the successful launch of the Washington Carbon Allowance (WCA) futures contract, along with the first trade in the contract, on December 5th.

NODAL CLEAR HIGHLIGHTS

  • Nodal Clear has grown to 19 clearing members! To view the full list, visit: Clearing Members.

First Washington Carbon Allowance futures trades on Nodal Exchange

Nodal Exchange and IncubEx announced the successful launch of the Washington Carbon Allowance (WCA) futures contract, along with the first trade in the contract, on December 5th.

Participating firms supporting the WCA contract on the 5th included: Shell Energy North America (US), L.P. (“Shell Energy”), Mercuria Energy America (“Mercuria”), and broker, BGC Financial LP (“BGC”).

Nodal Exchange posted volume of 25 lots of Washington Carbon Allowance futures, equivalent to 25,000 WCAs at a price of $35.00/MT for December 2023 delivery. The Nodal WCA futures contract is the first exchange-listed and cleared contract corresponding with the Washington carbon “Cap-and-Invest” program, the newest carbon market in North America. The Cap-and-Invest program, set to commence compliance obligations on January 1, 2023, will gradually cover about 75% of the state’s CO2 emissions. The futures contracts call for delivery of Washington Carbon Allowances in the Washington Compliance Instrument Tracking System Services (CITSS) registry.

The program aims to lower CO2 emissions 45% below 1990 levels by 2040 and 95% below 1990 levels, reaching net-zero carbon emissions by 2050 as set by the Washington state’s Climate Commitment Act.

The WCA futures contract joins the slate of environmental products on Nodal Exchange including futures and options for the Western Climate Initiative and RGGI carbon, Renewable Fuels including RINS, LCFS and OCFP, a slate of voluntary offset contracts, as well as 45 different REC markets. Open interest in North American environmental market futures and options on Nodal has surpassed 220,000 lots, up 30% year over year

Read full article

Nodal in the news

November 2022

Nodal to launch new Washington environmental futures contracts

Learn more
August 2022

Power futures grow 32% and environmental futures 103% in July

Learn more
July 2022

Nodal achieves new records in power and environmental futures

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 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.