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Nodal Newsletter | November 2022

Nodal Highlights

NODAL ENVIRONMENTAL HIGHLIGHTS

  • October volumes in environmental markets on Nodal totaled 17,510 lots, up 25% from 14,039 lots a year earlier.
  • Open interest in the environmental market group hit a record of 209,983 lots in October, and ended the month at 208,968 lots, up 25% from 157,750 a year earlier.
  • Texas CRS wind and solar futures and options volume totaled 8,551 lots in October, up 174% from 3,125 lots, a year earlier, and open interest in Texas CRS wind and solar futures combined ended the month at 39,031 lots, up 41% from 27,606 a year earlier.

NODAL POWER HIGHLIGHTS

  • Power futures traded volume increased more than 40% in October over September 2022 with 191 TWh traded.

NODAL CLEAR HIGHLIGHTS

  • Nodal Clear has grown to 19 clearing members! Visit Clearing Members to learn more.

Nodal Exchange to launch the first-ever Washington Carbon Allowance and National Wind Renewable Energy Certificate futures contracts in collaboration with IncubEx

Nodal Exchange and IncubEx announced today the planned launch date of December 5th, 2022 for the Washington Carbon Allowance (WCA) futures contract and the National CRS Listed Wind Renewable Energy Certificate (REC) futures contracts, pending regulatory review.

The WCA contract will be the first exchange listed and cleared contract corresponding with the newest regional carbon market in North America, in Washington state. The Washington carbon “Cap-and-Invest” program, which is set to commence compliance obligations on January 1, 2023, will gradually cover about 75% of the state’s largest emitters of CO2. Washington Carbon Allowances from the listed contracts will be physically delivered via 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 North American listed carbon products on Nodal Exchange including: California Carbon Allowance (CCA) futures and options, California Carbon Offset (CCO) futures and Regional Greenhouse Gas Initiative (RGGI) futures and options. Open interest in North American carbon futures on Nodal has reached 40,211 lots, up 128% year over year.

“The North American carbon market landscape continues to evolve, grow and mature and the new Washington cap-and-invest program is another illustration of how states and provinces are building on the success of neighboring jurisdictions in addressing environmental issues via market-based solutions,” said Dan Scarbrough, President and COO at IncubEx. “We see this contract as another major exchange product development that provides all the known benefits of transacting environmental commodities in a regulated futures market.”

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Nodal attends and sponsors the Nodal Trader Conference in NYC

It was a pleasure to visit with our trading community and listen to industry leaders speak on important energy trading topics at the 15th annual S&P Global Platts Nodal Trader Conference and Reception in October. Among the speakers were Nodal’s CEO and Conference Chairman, Paul Cusenza as well as Nodal’s President and COO, Demetri Karousos. Check out some of our favorite highlights.

Thank you for a powerful conference!

Nodal in the news

August 2022

Nodal power futures grow 32% and environmental futures 103% in July

Learn more
July 2022

Nodal achieves new records in power and environmental futures

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June 2022

Nodal Exchange lists new environmental futures and options

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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 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.