Nodal Exchange, LLC on Monday announced the successful transition of 100% of the positions in Nodal Exchange contracts from the previous clearing house, LCH.Clearnet Limited, to Nodal Clear, LLC.
Nodal Clear now functions as the central counterparty for all Nodal Exchange transactions.
Twelve clearing members have been involved in the transition, which moved about 340 million megawatt hours of futures positions with a notional value of over $12 billion on each side (more than $24 billion total) to Nodal Clear.
Nodal Clear has contributed $20 million of its funds to the default waterfall, whereas Nodal Clear’s 12 clearing members have pumped $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 possible.”
Nodal Clear was established on October 1, 2014. It obtained registration as a derivatives clearing organization (DCO) from the United States Commodity Futures Trading Commission (CFTC) on September 24, 2015.
To view the official announcement from Nodal Exchange, click here.