Nodal Exchange, as part of EEX Group, and Nasdaq Futures, Inc. (NFX) have reached an agreement to sell NFX’s futures and options exchange business to Nodal. Nodal will acquire the core assets of NFX, including the portfolio of NFX contracts. The transaction involves the transfer of existing open positions in U.S. Power, U.S. Natural Gas, Crude Oil and Ferrous Metals futures and options contracts to Nodal Clear.
This agreement represents a significant development for Nodal Exchange as it continues to expand its presence in the North American energy markets and deliver additional value to customers. The transfer of the NFX power and gas positions will further strengthen Nodal in those markets, while crude oil and ferrous metals would be new contracts for Nodal.
Nodal Exchange continues to grow rapidly with third quarter 2019 volumes growing 94% over third quarter 2018. In October, Nodal achieved its 15th consecutive month of record calendar month trading volume in power futures.
“This is an important milestone for Nodal Exchange as we continue to grow our position in the U.S. commodity markets, and we look forward to working with Nasdaq, clearing members, and participants to seamlessly integrate these positions into Nodal and to effectively serve these markets moving forward,” said Paul Cusenza, Chairman and CEO of Nodal Exchange and Nodal Clear. “Nodal Clear offers an award-winning portfolio margining methodology which will lead to significant capital efficiency for many customers when they transfer their energy portfolios.”
Nodal Exchange and Nodal Clear plan to complete the integration of U.S. Power contracts by December 2019. U.S. Natural Gas, Crude Oil and Ferrous Metals contracts could transfer to Nodal as soon as spring 2020.