Nodal Exchange, LLC and LCH.Clearnet Ltd (LCH.Clearnet) have expanded their trading and clearing offering into a new geography with the launch of contracts settling on the Electric Reliability Council of Texas (ERCOT). Available for trading from today, the monthly term contracts are based upon real-time prices across 4 new locations: North, South, West and Houston zones, for both peak and off-peak time periods.
The contracts, which will be cleared by LCH.Clearnet, will extend out to 4 years worth of expiries and are available on both the Nodal Exchange auction market and its over-the-counter trade submission facility for negotiated transactions.
ERCOT manages the flow of electric power to 22 million Texas customers – representing 85 percent of the state’s electric load and 75 percent of the Texas land area.
“We are very happy to be able to offer exchange trading and central counterparty clearing on these key locations in Texas. ERCOT is a major market and our current participants wanted the ability to trade these key zones on Nodal Exchange. We also welcome new participants focused on the Texas market to our trading community,” said Paul Cusenza, chief executive officer of Nodal Exchange.
Alberto Pravettoni, managing director, corporate strategy, LCH.Clearnet said: “Extending the range of locations available creates new trading opportunities for both new and existing market participants. Combined with the recent expansion into the California market, this offering is further proof of our commitment towards developing a secure and robust environment within which to trade financial nodal power contracts."
