Why Nodal Exchange?
Credit Risk Management & Capital Efficiency
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, even across different commodities (e.g., power and gas), results in greater capital efficiency for Nodal Exchange participants.
Nodal Exchange contracts trade on Nodal LiveTrade, a central limit order book with a trading screen interface that offers the order flexibility Nodal power traders have come to expect. Select Nodal contracts also trade on T7, a trading platform developed by Deutsche Börse, that delivers ultra-low latency and optimal handling of very high throughput using its state-of-the-art technology. Nodal also provides to its trading participants front-end trading solutions from approved leading providers including CQG, Trading Technologies (TT) and Trayport. For additional flexibility, Nodal Exchange also offers Nodal BlockTrade, a service for clearing block trades.
Nodal Exchange is a leader in innovation having introduced futures contracts on the most granular set of nodal power locations in the world. In addition, Nodal Exchange introduced the world’s first trucking freight futures contracts in early 2019 and currently offers the broadest suite of North American environmental futures and options contracts in collaboration with IncubEx. Nodal Exchange is committed to working with commodity market participants to develop products that best meet market needs.
Risk Management Services
Nodal Exchange active traders enjoy free access to superior risk management services, including straight-through processing (STP) of trades, end of day price & trade data, and margin and position limit monitoring.
Price Discovery & Market Liquidity
Nodal Exchange provides superior price discovery and market transparency. Daily marks are provided to participants on approximately 60,000 futures expiries and options contracts. Participants can also view the transaction price on all Nodal Exchange trades. Being able to trade standardized futures and options contracts with many buyers and sellers on an anonymous basis without worry of credit risk expands the universe of counterparties available, allowing Nodal Exchange participants to better achieve the best transaction price. Participants also benefit from being able to net their positions, given the clearing house acts as the central counterparty. These benefits enable a more active and liquid market for Nodal Exchange contracts.
Nodal Exchange offers over 1,000 futures and options contracts on hundreds of unique locations in the organized Regional Transmission Organization / Independent System Operator (RTO/ISO) markets. Nodal Exchange has the flexibility to quickly introduce additional locations as needed by participants. Nodal Exchange power contracts are all offered in 1MW lots to give participants the ability to tailor their futures and options positions to their actual needs.