Nodal Exchange, LLC and LCH.Clearnet Ltd announced today that extended expiries on 72 locations, 144 peak and off-peak contracts, are now available for trading. The locations, which include all of the hubs and zones currently offered in Nodal Exchange’s daily auction, are now available for trading in the current month plus 32 months forward. In less than 6 months, Nodal Exchange and LCH.Clearnet Ltd have introduced 2,880 new tradable expiries in response to direct market demand.
Roger Liddell, chief executive officer, LCH.Clearnet said: “Together with Nodal Exchange we continue to transform the North American power marketplace. Since launching this groundbreaking service, in April 2009, we have made remarkable progress as this extension demonstrates. Responding to the demands of participants and supporting the future growth of the marketplace is our ongoing focus.”
“Interest and participation in Nodal Exchange is growing, and after the positive reaction to our expiry extension in August, participants requested we broaden the service to more locations. We are very happy to be able to better meet market demand,” said Paul Cusenza, chief executive officer of Nodal Exchange.
Nodal Exchange is the only market where the majority of these 144 extended expiry contracts can be centrally cleared. Nodal Exchange also offers over 1,700 additional locations (over 3,400 contracts) that can also only be central counterparty cleared on Nodal Exchange through LCH.Clearnet Ltd. Launched in April 2009, Nodal Exchange has successfully been trading across four market locations: ISO-NE (ISO New England), NYISO (New York ISO), PJM (PJM Interconnection), and MISO (Midwest Independent Transmission System Operator).
LCH.Clearnet is the world’s leading independent clearing house group and has a long history of successfully managing credit risk through central counterparty clearing. LCH.Clearnet Ltd has continued its history of innovation through pioneering the clearing of nodal power contracts and the use of Value-at-Risk (VaR) based margining on Nodal Exchange.
