Nodal Newsletter | January 2021

Nodal Highlights

NODAL GROWS OPEN INTEREST IN POWER FUTURES

Nodal Exchange grew its power futures open interest 11% during 2020, despite industry open interest declining 1% during the pandemic year.

NODAL ACHIEVES NEW RECORDS IN ENVIRONMENTAL FUTURES

On December 30th, Nodal Exchange successfully completed the largest physical delivery of environmental contracts to date of 10,460 lots worth $129 million. These deliveries included:

  • 5,645 Regional Greenhouse Gas Initiative Futures
  • 4,775 California Carbon Allowance Futures
  • 40 California Low Carbon Fuel Standard Futures

NODAL ACHIEVES RECORD OPEN INTEREST IN ENVIRONMENTAL

Texas CRS RECs hit an all-time high in open interest topping 10 million MWh (10,000 contracts) in the last week of December on Nodal Exchange. The total volume since the contracts launched in December 2019, is just under 20 million MWh (20,000 contracts).

HAPPY NEW YEAR

Thank you so much for supporting Nodal in 2020. We wish you and yours a happy, healthy, and prosperous 2021!


Happy New Year from Nodal!

2020 was clearly an unusual and challenging year. But despite the pandemic, with your assistance, we collectively achieved important milestones and realized many successes.

As we look back on 2020, we are reminded of many highlights:

  • In February, Nodal achieved its record for single day power futures trading and the month of February set a new monthly record for trading volume. March 2020 marked the 20th consecutive month of record calendar month trading on Nodal Exchange.
  • Also in February, we transferred the power open interest of Nasdaq Futures, Inc. to Nodal and in April we transferred natural gas while the pandemic was in its “first wave.”
  • In May, Nodal Exchange became the leading US power futures exchange with the majority of open interest now at Nodal Exchange and was named Exchange of the Year by Energy Risk.
  • In November, Nodal Clear received an amendment to its order from the CFTC to permit clearing for other exchanges
  • Also in November, Nodal expanded its environmental offering to 82 contracts by adding 15 new environmental contracts including the first physically settled Renewable Identification Number (RIN) contracts. In addition to offering the world’s largest set of power futures and options contracts, Nodal also offers the world’s largest environmental set of futures and options contracts.

None of these achievements would have been possible without you. Your continued support is the key to our success. On behalf of Nodal Exchange – thank you! We look forward to continued success together in 2021!

Nodal in the news

November 2020

Nodal launches new environmental contracts

Learn more
November 2020

CFTC approves Nodal Clear to clear for other DCMs

Learn more
November 2020

Environmental derivatives central to US energy transition - Nodal

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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