Nodal Exchange, LLC announced today the successful migration of 100% of
the positions in Nodal Exchange contracts from the previous clearing
house, LCH.Clearnet Limited, to Nodal Clear, LLC, the new clearing house
subsidiary of Nodal Exchange. Nodal Clear now serves as the central
counterparty for all Nodal Exchange transactions.
This Smart News Release features multimedia. View the full release here:
Twelve clearing members were involved in the transition today, which
moved approximately 340 million megawatt hours of futures positions with
a notional value of over $12 billion on each side (over $24 billion
total) to Nodal Clear.
Nodal Clear has contributed $20 million of its funds to the default
waterfall, and Nodal Clear’s 12 clearing members have placed $100
million in Nodal Clear’s guaranty fund.
“The successful transition to Nodal Clear is a tremendous achievement
and milestone for our organization,” said Paul Cusenza, Chairman and
Chief Executive Officer of Nodal Clear and Nodal Exchange. “Establishing
Nodal Clear was an important strategic decision for Nodal Exchange as it
gives us the opportunity to more rapidly offer new products and services
to better meet the needs of the markets we serve. We sincerely
appreciate the support and efforts of all those in our trading and
clearing community who helped make this transition to Nodal Clear
Nodal Clear was formed October 1, 2014, and was granted registration as
a derivatives clearing organization (DCO) by the U.S. Commodity Futures
Trading Commission (CFTC) on September 24, 2015.
About Nodal Clear, LLC
Nodal Clear, LLC, the clearing house for Nodal Exchange, commenced
clearing Nodal Exchange contracts on October 19, 2015. Nodal Clear
serves as the central counterparty for all Nodal Exchange transactions.
Nodal Clear’s strong risk management practices create a sound market
infrastructure for trading Nodal Exchange contracts. Nodal Clear employs
a tailored portfolio margining methodology that appropriately margins
Nodal Exchange contracts and provides capital efficiencies to market
participants. Nodal Clear is a Derivatives Clearing Organization (DCO)
and is regulated by the CFTC. Nodal Clear, LLC is a wholly owned
subsidiary of Nodal Exchange, LLC.
About Nodal Exchange, LLC
Nodal Exchange is a derivatives exchange providing price, credit and
liquidity risk management solutions to participants in the North
American energy markets. Nodal Exchange is a leader in innovation,
having introduced the world’s largest set of electric power locational
(nodal) futures contracts. Nodal Exchange currently offers over 1,000
contracts on hundreds of unique locations, providing the most effective
basis risk management available to market participants. In addition,
Nodal Exchange offers a Henry Hub natural gas contract providing
cross-margining benefits with participant’s power portfolios. All Nodal
Exchange contracts are cleared by Nodal Clear. Nodal Exchange is a
designated contract market regulated by the CFTC. Nodal Exchange is an
independent, privately held company.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151019006406/en/
Copyright Business Wire 2015
Source: Business Wire
(October 19, 2015 - 2:05 PM EDT)
News by QuoteMedia