Nodal Exchange and IncubEx have announced the successful launch of their first tranche of North American Environmental contracts.
The new contracts, which mark the expansion of Nodal Exchange’s products into the environmental markets sector, include futures and options on: California Carbon Allowances, Regional Greenhouse Gas Initiative Allowances (RGGI), New Jersey Solar Renewable Energy Certificates, PJM Tri-Qualified Renewable Energy Certificates and 11 other emissions and renewable contracts.
We are very pleased to be working with IncubEx to expand our product set and to offer environmental contracts to meet the needs of these markets,” said Paul Cusenza, Chairman and Chief Executive Officer of Nodal Exchange.
We’ve worked hard with Nodal Exchange and our customers to develop and launch this comprehensive suite of environmental products,” commented Dan Scarbrough, IncubEx President and COO. “The launch is a proud moment for IncubEx and Nodal. And going forward, we’re dedicated to working with customers, getting their valuable feedback and building these markets together.
All environmental contracts are listed and cleared on Nodal Clear, alongside more than 1,000 futures and options contracts on hundreds of unique locations within the North American power markets.
Nodal Exchange, as part of EEX Group, is utilizing the T7 trading platform developed by Deutsche Börse. The new platform offers 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.
Nodal Exchange also provides the most effective basis and credit risk management available to market participants. Through its clearinghouse, participants also can benefit from Nodal Clear’s portfolio margining offering.
Nodal’s entry into the environmental markets sector also augments carbon and renewable contracts listed by EEX. IncubEx, which serves as the global exchange partner to 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 support market growth.