Nodal Exchange and IncubEx Set Launch Date for North American Environmental Products
Nodal Exchange and IncubEx are pleased to announce the launch of their
first tranche of North American Environmental products, which is planned
for November 16, 2018, pending regulatory review.
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These products will include a broad range of emissions and renewable
energy certificate (REC) futures and options contracts including:
California Carbon Allowances, Regional Greenhouse Gas Initiative
Allowances, New Jersey Solar Renewable Energy Certificates and PJM
Tri-Qualified Renewable Energy Certificates, among others. The contracts
will be listed and cleared alongside Nodal Exchange’s existing portfolio
of energy products.
Carbon and Renewable markets are increasingly pertinent to the U.S.
power sector. The new environmental contracts will complement Nodal
Exchange’s core energy business and allow participants to benefit from
optimized portfolio margining.
Nodal Exchange has established itself as a leader in innovation,
offering more than 1,000 futures and options contracts on hundreds of
unique locations within the North American power markets, providing the
most effective basis and credit risk management available to market
participants.
For these new environmental contracts, Nodal Exchange, as part of EEX
Group, will be utilizing the T7 trading platform, developed by Deutsche
Börse, with a feature-rich front-end system provided by CQG, for
efficient exchange-based trade execution. Existing Nodal Exchange
participants and authorized brokers can also submit negotiated block
trades for clearing by Nodal Clear.
Dan Scarbrough, IncubEx President and COO, commented “Environmental
markets are longstanding and expanding in North America, and our initial
product set is reflective of the wide array of active programs. Our team
has a deep background in these markets and an on-going commitment to
innovation, details and service. We believe this launch and our re-entry
into these markets will demonstrate to our customers a laser focus on
these principles.”
“We are very happy to be able to announce, with IncubEx, the coming
launch of our environmental contracts,” said Paul Cusenza, Chairman and
Chief Executive Officer of Nodal Exchange. “Nodal Exchange has grown
significantly to achieve over 30% market share of open interest of U.S.
monthly power futures volume by focusing on meeting the unique needs of
the markets we serve. We believe these new products are complementary to
our core business and allow us to further grow into new and evolving
markets.”
EEX has established significant market share in the primary and
secondary markets of the European Union Emissions Trading Scheme (EU
ETS). Under the cooperation agreement, EEX and IncubEx have joined
forces in product development, marketing and sales to ensure close
customer contact and to support market growth.
About IncubEx
IncubEx is an incubator for exchange traded products, services, and
technology solutions. At its core, IncubEx is a product and business
development firm. The company works in conjunction with its global
exchange partner, European Energy Exchange (EEX) and other leading
service providers and stakeholders to design and develop new financial
products in global environmental, reinsurance, and related commodity
markets. The company has a specific focus on innovation and continuous
improvement of products and services, including technology, trading
solutions, and operational efficiencies. The IncubEx team is comprised
of former key Climate Exchange executives and is uniquely positioned to
capture these opportunities with its partners. The company was founded
in 2016 and currently has offices in Chicago and London.
About Nodal Exchange
Nodal Exchange is a derivatives exchange providing price, credit and
liquidity risk management solutions to participants in the North
American commodities markets. Nodal Exchange is a leader in innovation,
having introduced the world’s largest set of electric power locational
(nodal) futures contracts. As part of EEX Group, a group of companies
serving international commodity markets, 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 which is a CFTC
registered derivatives clearing organization. Nodal Exchange is a
designated contract market regulated by the CFTC.

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