Nodal Exchange offers first real-time LMP contracts

Nodal Exchange launched eight contracts today, its first to settle against real-time Locational Marginal Price (LMP).

The contracts settle at four locations: PJM Western Hub, PJM AEP-Dayton Hub, PJM Northern Illinois Hub, and MISO Cinergy Hub. Contracts for both peak and off-peak time periods are available at each location.

Trading can begin today, January 7th, 2010, for the June 2010 through January 2014 expiries. The contracts are being offered in the daily auctions alongside contracts for the 72 key hubs and zones that settle against day-ahead LMP.

In addition, these new real-time contracts are also available over-the-counter for submission to Nodal Exchange for clearing by LCH.Clearnet.

“These contracts are the first real-time LMP settled contracts offered by Nodal
Exchange, as all other contracts settle against day-ahead LMP,” said Paul Cusenza, chief executive officer of Nodal Exchange. “With these contracts, participants will not only be able to trade real-time LMP on Nodal Exchange, but will also be able to trade day-ahead/real-time spreads.”