US power market exchange expands offering

Nodal Exchange and clearing house LCH.Clearnet have extended expiries on 144 peak and off-peak contracts available on the exchange to include current month plus 48 months forward.

The 72 contract locations that saw this extension include all of the hubs and zones offered in Nodal Exchange’s daily auction. In October, Nodal Exchange and LCH.Clearnet began offering contracts trading in the current month plus 32 months forward for these 72 locations.

Less than seven months after the launch of the exchange, it has introduced 5,184 new tradable expiries in response to market demand. “We are very happy to be able to extend these expiries even further to meet the demand of our participants,” says Paul Cusenza, chief executive officer of Nodal Exchange.

Nodal Exchange is the only market where most of these 144 extended expiry contracts can be centrally cleared. Nodal Exchange also offers more than 1,700 additional locations, to make a total of more than 3,400 contracts that can be centrally cleared.

Launched in April, Nodal Exchange operates across four regional markets: ISO-NE (ISO New England), NYISO (New York ISO), PJM (PJM Interconnection), and MISO (Midwest Independent Transmission System Operator).

LCH.Clearnet has pioneered the clearing of nodal power contracts and the use of value-at-risk-based margining on Nodal Exchange.