Aims to build liquidity, efficiency and transparency in UK power trading
London, November 24, 2009 – N2EX, the UK power market set up by NASDAQ OMX Commodities and Nord Pool Spot, has decided on a launch date of January 11, 2010 for its market in cooperation with The Transitional Market Council (TMC). The N2EX market design has been tailored to the requirements of the UK power market with the goal of creating UK’s premier energy exchange.
The new power market is being developed in close cooperation with the Futures and Options Association (FOA) and UK market participants. It will launch its day-ahead auction market on January 11, and trading and clearing for the prompt market will begin the following day. The platform will be live in mid-December and it is expected that participants will use the platform for clearing ahead of the market launch date as part of their testing.
N2EX will later establish a cash-settled derivatives power market, with a full range of clearing services and cross-commodity netting opportunities. The derivatives market will be based on the physical reference price.
“We are proud to deliver the N2EX market solution to the UK power market. The agreed launch date will secure market readiness,” commented Geir Reigstad, Vice President NASDAQ OMX Commodities.
“Our aim is to establish a physical reference price based on the physical power market and to build market liquidity, efficiency and transparency,” said Hans Randen,” acting CEO of Nord Pool Spot.
“Together we have established state-of-the-art solutions adapted to our specific requirements. The market trials have shown that N2EX has every opportunity to be a very useful instrument for the UK power market,” said Paul Beynon, chairman of the Power Trading Forum of FOA.
Dynamic price and volume information will also strengthen the transparency for UK consumers, allowing them to understand the price mechanisms in the wholesale market. This will lead to increased competition, to the benefit of end users.
Nord Pool Spot has a long-term experience in operating power markets dating back to 1993. NASDAQ OMX Commodities provides significant experience with its knowledge of clearing the Nordic power market in addition to being a supplier of exchange technology to more than 70 financial marketplaces in over 50 countries.
Lysaker, 24 November 2009
For further information please contact:
+47 67 52 80 80
+47 934 07 300
The Transitional Market Council (TMC) consists of representatives from the members, FOA and N2EX.
N2EX is the name of the UK power market offering from NASDAQ OMX Commodities and Nord Pool Spot, but it is not a legal entity. The web site, www.N2EX.com, will following the market opening provide market information and documentation for both the physical and financial UK power market.
NASDAQ OMX Commodities and Nord Pool ASA provide access to the world’s largest power derivatives markets and one of Europe’s largest carbon markets. NASDAQ OMX Commodities is responsible for the international derivative and carbon products offering, and also operates the clearing business and offers consulting services to commodities markets globally. Nord Pool ASA is responsible for the exchange operations and trading activities, including ownership of the Nordic derivative products. NASDAQ OMX Commodities and Nord Pool ASA have more than 385 members from 22 countries across a wide range of energy producers and consumers, as well as financial institutions. NASDAQ OMX Commodities is an entity in the NASDAQ OMX Group. For more information, please visit www.nasdaqomx.com/commodities and www.nordpool.com.
Nord Pool Spot AS has been operating spot market for power since 1993. Nord Pool Spot AS operates today the Nordic day-ahead market Elspot, the intra-day Elbas market, and a Danish market for gas. Nord Pool is the leading power exchange in Europe, with 15 years of experience offering derivate trading which now includes contracts for Nordic, German and Dutch power as well as carbon contracts.
About NASDAQ OMX
The NASDAQ OMX Group, Inc is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents, with over 3,800 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.