Nodal Newsletter | February 2021

Nodal Highlights

NODAL EXCHANGE SETS DAILY TRADING RECORD IN POWER FUTURES

On February 9th, Nodal Exchange achieved a new daily trading record in power futures with a total traded volume of 56.2 million MWh which is equivalent to the electricity that 5.3 million homes would consume in a year in the USA. This surpasses the previous daily trading record of 42.0 million MWh from February 4th, 2020.

NODAL ACHIEVED RECORD OPEN INTEREST IN POWER, GAS, ENVIRONMENTAL IN 2020

Nodal achieved record year-end open interest in 2020 across its key asset classes – power, natural gas and environmental futures – including achieving over 1 billion MWh of open interest as of December 31, 2020. This represents 11% growth from the prior year while the industry declined 1%.

NODAL DECLARED RECOGNIZED OVERSEAS INVESTMENT EXCHANGE BY UK’s FCA

Nodal has been recognized by The Financial Conduct Authority (FCA) in the United Kingdom (UK) as a Recognized Overseas Investment Exchange for the purposes of the Financial Services and Markets Act 2000.

NODAL ACHIEVES NEW RECORDS IN ENVIRONMENTAL IN JANUARY

  • Nodal open interest in environmental markets at the end of January 2021 hit 100,108 contracts, up 73% from 57,698 contracts at the end of January 2020.
  • Open interest in Nodal REC products topped 90,000 contracts in January, representing about 15% market share in the sector.
  • Pennsylvania Solar Alternative Energy Certificate (PA SAEC RECs) futures hit 10,000 contracts of open interest the last week of January, representing 55% market share in that contract.

NODAL ELECTRONIC TRADING

Nodal Exchange offers electronic trading in power, natural gas, and environmental products. The Nodal T7 Trading Platform can be accessed via industry leading web-based trading applications: CQG, Trading Technologies and Trayport. Please contact Nodal’s Account Management team with any questions.


Nodal Exchange sets daily trading record in power futures

On Tuesday, February 9, 2021, Nodal Exchange achieved a new daily trading record in power futures with a total traded volume of 56.2 million MWh which is equivalent to the electricity that 5.3 million homes would consume in a year in the USA. This surpasses the previous daily trading record of 42.0 million MWh from February 4th, 2020.

This record follows Nodal Exchange’s strong performance in 2020 achieving over 1 billion MWh of open interest as of December 31, 2020 representing over $55 billion of notional value (both sides.) This represents 11% growth from the prior year while the industry declined 1%. Nodal holds the majority of US power futures open interest with over 50% market share.

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Nodal Exchange achieved record year-end open interest in power, natural gas, and environmental markets in 2020

Nodal Exchange announced today that it achieved record year-end open interest in 2020 across its key asset classes – power, natural gas and environmental futures.

Nodal Exchange continues to improve its strong position in the North American monthly power futures markets achieving over 1 billion MWh of open interest as of December 31, 2020 representing over $55 billion of notional value (both sides). This represents 11% growth from the prior year while the industry declined 1%. Nodal holds the majority of US power futures open interest with over 50% market share.

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Nodal declared to be Recognized Overseas Investment Exchange by UK’s FCA

Nodal Exchange, LLC announced that it has been recognized by The Financial Conduct Authority (FCA) in the United Kingdom (UK) as a Recognized Overseas Investment Exchange for the purposes of the Financial Services and Markets Act 2000.

Under UK law, overseas exchanges must receive recognition from The Financial Conduct Authority in order to permit participants with UK addresses to trade on the Exchange.

“Recognition by The Financial Conduct Authority now permits participants residing in the UK to access Nodal Exchange,” said Paul Cusenza, Chairman and CEO of Nodal Exchange. “We appreciate the regulators’ efforts in this process and welcome participation from British participants in our markets including the largest set of power and environmental contracts in the world.”

Nodal Exchange and IncubEx continue to grow environmental markets

Nodal Exchange achieved impressive growth and several milestones in environmental futures trading in January 2021. Nodal’s open interest in environmental markets at the end of January 2021 hit 100,108 contracts, representing 10% market share and 73% growth over January 2020. Open interest in Nodal REC products topped 90,000 contracts in January, representing about 15% of market share in the sector. Pennsylvania Solar Alternative Energy Certificate (PA SAEC RECs) futures hit 10,000 contracts of open interest in the last week of January, which represents 55% of the market share in that contract.

This success follows a strong 2020 for Nodal Exchange in the US environmental markets. Nodal futures open interest was 87,716 lots as of December 31, 2020, up 80% from the prior year while the industry grew only 12%. Nodal Exchange, which first listed its environmental futures, working in collaboration with IncubEX, in November 2018, continues to expand its environmental offering and now offers the largest set of environmental contracts in the world with a total of 82 contracts.

“Nodal Exchange has been able to achieve many milestones in 2020-2021, despite the ongoing global pandemic. We are pleased to see this growth in the Environmental sector, and we are proud to be the exchange with the broadest suite of environmental products in the world. Nodal is grateful for the trust and support of our trading and clearing community. It is very rewarding to be playing a role in efforts to improve our environment.” – Paul Cusenza, Chairman and CEO of Nodal Exchange.

Nodal traders can access Nodal T7 electronic markets via CQG, Trading Technologies and Trayport

Nodal Exchange offers electronic trading in power, natural gas, and environmental products. The Nodal T7 Trading Platform can be accessed via industry leading web-based trading applications: CQG, Trading Technologies (TT) and Trayport . Nodal also offers direct market access for qualifying participants. Please contact Nodal Exchange Account Management with any questions about connectivity solutions.

Nodal in the news

November 2020

Nodal launches new environmental contracts

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November 2020

CFTC approves Nodal Clear to clear for other DCMs

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November 2020

Environmental derivatives central to US energy transition - Nodal

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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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