Nodal Newsletter | September 2020

Nodal Highlights

NODAL ACHIEVES NEW RECORDS IN POWER OPTIONS

Nodal power options achieved record trading volumes in August with 5.0% market share. Power options open interest also achieved a record 20.5 million MWh which also accounted for 5.0% market share.

NODAL ACHIEVES NEW RECORD IN ENVIRONMENTAL

Nodal continues to grow in the environmental futures market achieving 132% growth in open interest in August.

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 Exchange achieves new records in environmental futures in August

Nodal Exchange grew its environmental futures open interest 132% from the prior year, ending August with a record 76,933 contracts of open interest. Nodal Exchange also achieved record market share of open interest in environmental futures contracts with 8.6% market share at the end of August 2020 which is up from 4.7% the prior year. Nodal Exchange also set a new market share record in August 2020 for environmental futures traded volume with 9.3% (up from 3.6% a year ago).

On August 31, Nodal Exchange completed the first-ever physical delivery of California Low Carbon Fuel Standard (LCFS) credits from an exchange listed futures contract. A total of 40 LCFS contracts, representing 4,000 LCFS credits at a price of $188.50 per credit, were delivered in the LCFS Reporting Tool and Credit Bank & Transfer System (LRT-CBTS) operated by the California Air Resources Board.

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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

September 22-25
ENERGY RISK USA VIRTUAL WEEK – Nodal Exchange will be sponsoring and attending The Energy Risk USA Virtual Week. Our CEO, Paul Cusenza, will be chairing and speaking on day two of this event. For more information visit: Energy Risk USA
October 22
NODAL TRADER DIGITAL CONFERENCE – Nodal Exchange will be sponsoring and attending the Nodal Trader Digital Conference. Our CEO, Paul Cusenza, will be chairing this event. For more information visit: Nodal Trader

Nodal in the news

July 2020

Nodal sets records in power, gas and environmentals

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June 2020

Nodal sets records in power

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May 2020

Energy Risk Awards 2020 winner

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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.