Nord Pool, the European power market, is to enter a new area of business with the announcement that it will launch, together with Euronext, a dedicated Nordic and Baltic power derivatives market.
The new Euronext Nord Pool Power Futures market will be traded on Euronext’s Optiq® trading platform and cleared by Euronext Clearing. The announcement comes after extensive consultation with market participants. Euronext Nord Pool Power Futures will be designed to answer the need expressed by the market to have a long-standing, sustainable market infrastructure committed to developing secure power futures trading in the Nordic and Baltic regions, with a strong Nordic foundation. Customer testing will open as soon as March 2025.
Euronext Nord Pool Power Futures will offer trading of cash-settled futures for all maturities on System Price and EPADs across the Nordics and Baltics. Underlying spot indices will be provided by Nord Pool.
Camille Beudin, Head of Diversified Services at Euronext and Chairman of the Board at Nord Pool, said: “The launch of Euronext Nord Pool Power Futures presents a unique opportunity to combine the skills and expertise of Euronext across energy markets with a firm Nordic base, harnessing industry knowledge, trading and clearing of financial products, in order to deliver an attractive and competitive offering for customers.”
Welcoming the development, Tom Darell, CEO at Nord Pool, added: “Nord Pool and Euronext are absolutely committed to delivering a long-standing and liquid power derivatives market for the Nordic and Baltic regions. The Nordic and Baltic power market is showing a recovery since the energy crisis, but action is needed to cement and accelerate that recovery.
“Nord Pool and Euronext will work to bring back liquidity to Nordic power derivatives, with a proven set up which will attract OTC traded volumes into the market. We have consulted extensively with key businesses in the Nordic and Baltic power sector, businesses which represent more than 70% of market volumes. Their message has been clear: end uncertainty in the power derivatives territory by delivering a liquid power futures market, run by a business with commitment and a vision for the future.”
About Nord Pool
Nord Pool, Europe’s leading power market, delivers efficient, simple and secure trading across Europe. In 2023 the company, which is majority owned by Euronext, celebrated 30 years of powering the market. Nord Pool offers day-ahead and intraday trading, clearing and settlement, and additional services, to customers regardless of size or location. Today 370 businesses from 20 countries trade on Nord Pool’s markets.
Nord Pool operates markets in the Nordic and Baltic regions, Germany, Poland, France, The Netherlands, Belgium, Austria, Luxembourg and the UK. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 16 European countries, while also servicing power markets in Bulgaria, Croatia and Georgia. In 2023 Nord Pool had a total turnover of 1103.83 TWh traded power.
Nord Pool’s three decades of power market experience is built on offering flexibility, transparency, innovation, greater choice and participation to our customers.
For more information, please contact:
Stuart Disbrey
Communications Director
[email protected]
Irene Zeier
Communications Director
[email protected]
Oslo, 27 August 2024