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Nodal Newsletter | October 2022

Nodal Highlights

NODAL ENVIRONMENTAL HIGHLIGHTS

Open Interest in environmental products offered on Nodal Exchange topped $1 billion in notional value during the last week of September.

NODAL CLEAR HIGHLIGHTS

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

NODAL EVENT HIGHLIGHTS

Nodal Exchange will be sponsoring, and Paul Cusenza, Chairman & CEO of Nodal Exchange, will be chairing, the S&P Global Platts Nodal Trader Conference, Thursday October 27th to Friday October 28th in New York, NY. Demetri Karousos, President & COO of Nodal Exchange, will also be speaking. To find out more: S&P Global Platts Nodal Trader Conference


Nodal sets new open interest records in environmentals

Open Interest in environmental products offered on Nodal Exchange topped $1 billion in notional value during the last week of September.

Open interest in environmental products on Nodal Exchange ended the month at 206,138 lots, up 33% from 154,823 a year earlier. Open interest in carbon products (CCA and RGGI) on Nodal ended the month of September at 39,606 lots, up 179% from 14,175 a year earlier. September was the fourth highest volume month for CCAs on Nodal with 7,554 lots traded.

Open interest across all Renewable Energy Certificate (REC) contracts on Nodal ended September at 164,707 contracts, up almost 19% from 138,888 a year earlier. REC market share of open interest based on number of lots on Nodal in September was 23%. Open interest in PJM-related contracts was 104,551 lots at month-end, up 20% from 87,163 a year earlier. Texas CRS wind and solar REC futures hit a record high in open interest of 39,501 lots, and ended September at 37,330 lots, up 38% from 27,033 a year earlier. September was the third highest volume month for Texas CRS products on Nodal with more than 9,400 lots traded, equivalent to 9.4 million MWh of wind and solar power.

It was also a record delivery month for September, with 4,991 lots across 7 markets with a notional value of $27,998,000.

Through its collaboration with IncubEx, Nodal now lists more than 100 futures and options contracts in compliance and voluntary markets in carbon, RECs and renewable fuel credits, the largest suite offered on any exchange.

Nodal natural gas market is still growing

Nodal Exchange currently offers over 1,000 contracts on hundreds of unique power locations, the largest set of environmental futures and options contracts in the world, as well as Henry Hub natural gas contracts providing the most effective risk management available and cross-margining benefits to market participants. Nodal has seen growth in the U.S. natural gas market throughout the past four years.

Nodal offers access to electronic markets in natural gas, power, and environmental futures. Nodal offers Henry Hub 10k monthly contract for outrights, spreads, and strips which can be accessed via our front-end screen. In addition, we also offer the Henry Hub 2.5k per day contract for outrights, spreads, and strips. If you would like more information or access to this screen, please contact Energy Markets or call (703) 962-9820.

Nodal to sponsor and attend upcoming Nodal Trader Conference

Please join us at the 15th annual S&P Global Platts Nodal Trader Conference taking place from October 27-28, 2022 at the Hilton Midtown in New York City! Our Chairman and CEO, Paul Cusenza will be the conference chair, and our President and COO, Demetri Karousos will speak October 28 at 11:00 AM on the panel topic: Anticipating and Managing Volatility and Risk.

For more information or to register for this event, visit: S&P Global Platts Nodal Trader Conference. We hope to see you at this conference, or one of the other upcoming events below that Nodal Exchange will be at!

Upcoming Events

October 12-14, 2022
NAEMA FALL CONFERENCE: Nodal Exchange will be sponsoring the NAEMA Fall Conference taking place Wednesday, October 12 to Friday, October 14 in Atlanta, GA. For more information visit: NAEMA Fall Conference
October 19-21, 2022
WSPP FALL CONFERENCE: Nodal Exchange will be sponsoring the WSPP Fall Conference Wednesday, October 19 to Friday, October 21 in Palm Desert, CA. For more information visit: WSPP Fall Conference
October 24-26, 2022
PJM ANNUAL: Nodal Exchange will be sponsoring the PJM Annual meeting of members on Monday, October 24 to Wednesday October 26 in Cambridge, MD. For more information visit: PJM Annual
October 27-28, 2022
S&P GLOBAL PLATTS NODAL TRADER CONFERENCE: Nodal Exchange will be sponsoring, and Paul Cusenza, Chairman & CEO of Nodal Exchange, will be chairing, the S&P Global Platts Nodal Trader Conference, Thursday October 27th to Friday October 28th in New York, NY. Demetri Karousos, President & COO of Nodal Exchange, will also be speaking. For more information visit: S&P Global Platts Nodal Trader Conference
November 14-15, 2022
FIA FUTURES AND OPTIONS EXPO: Nodal Exchange will be sponsoring and attending the FIA Futures and Options Expo on Monday, November 14 to Tuesday, November 15, in Chicago, IL. For more information visit: FIA Futures and Options Expo

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

Learn more
June 2022

Nodal Exchange lists new environmental futures and options

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.