Futures & Options Association (FOA) in UK has chosen NASDAQ OMX Commodities and Nord Pool Spot AS to deliver market and clearing services for the UK wholesale power market.
NASDAQ OMX Commodities is European marketplace and clearing house for derivatives, with customers in Sweden, Finland, Denmark, UK and Germany. Nord Pool Clearing, now wholly-owned by NASDAQ OMX, is a large clearinghouse for financial power contracts in terms of both volume and open position with customers in 22 countries. Nord Pool is a significant power exchange in Europe, with 15 years of experience offering derivate trading which now includes contracts for Nordic, German and Dutch power as well as carbon contracts.
NASDAQ OMX Commodities and Nord Pool ASA provide access to large power derivatives markets and European carbon markets.
The consortium NASDAQ OMX Commodities and Nord Pool Spot will operate a cash-settled power derivatives market, allowing complete netting across contracts with the same delivery periods, with correlated contracts and positions in different commodities. Existing members at Nord Pool/NASDAQ OMX will not have to pay any dual fees for the UK market.
The new market and clearing services will also allow for complete netting across contracts with the same delivery periods, with correlated contracts and positions in different commodities, giving maximum efficiency.
The consortium will run a 24/7 Prompt market with immediate clearing and notification. A 24 hour helpdesk will be a single point of contact to ensure a flexible service. NASDAQ OMX Commodities/Nord Pool Spot will also run an Auction market, providing all services from bid-entry to reporting. Based in London new office will be staffed with experts on UK power markets.
Among other activities of the consortium will be Prompt market, Auction market, clearing and notification services, and the futures market. The project complies fully with the UK FSA regulations and existing exchange and clearing member relationships will be utilised.
Together with NASDAQ OMX we will offer a complete solution, including trading, clearing and notification services for the Prompt and Auction markets to be delivered immediately, says Erik Saether, CEO, Nord Pool Spot AS. We will also provide trading, clearing (including OTC), notification, settlement and delivery of all 1/2-hour physical contracts with a uniform interface.
L.D.