Nodal Newsletter | October 2020

Nodal Highlights

NODAL ACHIEVES NEW RECORDS IN ENVIRONMENTAL

Nodal surpassed 85,000 contracts of open interest on North American Environmental Markets. Nodal achieved record end of month environmental futures open interest with 84,658 lots and 9.5% market share at the end of September; open interest grew 127% year over year.

NODAL ACHIEVES RECORDS IN ERCOT AND CASIO POWER TRADING VOLUMES

Nodal achieved record ERCOT trading volumes in September resulting in 21% market share; ERCOT open interest also set new records at 20 million MWh and 17% market share. Nodal achieved record Western (CAISO & Mid-C) trading volumes in September with 16% market share.

NODAL ACHIEVES 60% OF TRADING VOLUME IN NYISO

Nodal achieved a record 60% market share of NYISO power futures traded volume in September and was the majority of trading volume in Q3 2020.

GLOBALCAPITAL GLOBAL DERIVATIVES AWARDS 2020

In September, Nodal Exchange was shortlisted for GlobalCapital Global Derivatives Exchange of the Year.

NODAL TO LAUNCH NEW ENVIRONMENTAL CONTRACTS

Pending regulatory review, Nodal will list the first-ever physically delivered futures contracts on D3, D4, D5 and D6 RIN markets on November 17, 2020.

NODAL PORTFOLIO MARGINING

Nodal’s award winning portfolio margining is risk-based, capital efficient, and designed to naturally adjust for seasonality. Please contact Nodal’s account management team for more information.

NODAL SCREEN TRADING

Screen trading on Nodal Exchange can be done via CQG, Trayport and TT. For information, please contact Nodal’s account management team.


Nodal and IncubEx to launch first-ever physically delivered RIN futures

Nodal Exchange and IncubEx announced today the upcoming launch of eight new Renewable Identification Number (RIN) futures and options contracts.

Pending regulatory review, Nodal will list the first-ever physically delivered futures contracts on D3, D4, D5 and D6 RIN markets on November 17, 2020. Complementary RIN options contracts will also be listed that day on the four futures contracts. The new contracts mark the latest expansion of the renewable fuels products group on Nodal, which offers the largest suite of listed environmental contracts in the world.

“The RIN market is the largest renewable fuels credit market and has proven effective in its goal to lower carbon emissions across the transportation sector,” said Nathan Clark, Managing Director at IncubEx. “These new products offer RIN participants a cost-efficient way to hedge price risk in the market.”

Read full article

Nodal’s award winning portfolio margining is risk-based, capital efficient, and designed to naturally adjust for seasonality

Nodal Clear, Nodal Exchange’s clearing house, provides effective credit risk management and superior capital efficiency through the use of portfolio margining. This robust and effective approach to margining, which accounts for the correlations between many different contracts, and different commodities (e.g., power and gas), results in greater capital efficiency for Nodal Exchange participants.

  • Nodal’s margin model provides capital efficiencies and stability for market participants.
  • Nodal is effectively using the same model parameters since Nodal Clear commenced in October 2015.

Nodal Exchange initial margin tools

Nodal Exchange participants and Clearing members can view their initial margin requirements as well as calculate requirements for prospective portfolios via an initial margin calculator available to those with log-in credentials for the Exchange platform.

Additional information on the Nodal Clear margin model and initial margin calculator can be obtained by contacting account management or at (703) 962-9820.

Screen trading on Nodal Exchange can be done via CQG, Trayport and TT

Nodal Exchange offers electronic trading in power, natural gas, and environmental products. We provide support for a variety of leading front-end trading applications including CQG, Trayport and TT. In addition, we can accommodate cross-connects and leased lines for market access and can assist in selecting the software that best suits your needs. For more information, please contact or call 703-962-9820.

Upcoming Events

October 22
NODAL TRADER DIGITAL CONFERENCE – Nodal Exchange will be sponsoring and attending the Nodal Trader Digital Conference on October 22. Our CEO, Paul Cusenza, will be chairing this event. Demetri Karousos and Mike Julian from Nodal will be moderating panels on "Creating Robust Credit / Collateral Policies" and "Linking FTRs and Power Futures," respectively. For more information visit: Nodal Trader

Nodal in the news

September 2020

Nodal to expand environmental derivatives

Learn more
September 2020

Nodal achieves new records in environmental futures

Learn more
July 2020

Nodal sets records in power, gas and environmentals

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.