Change to our margin model
Helping customers cut the cost of trading.
At Nord Pool we continually review our operational procedures and pricing to ensure we remain good value for money while maintaining the robustness and high levels of service our customers expect.
In this spirit we are happy to introduce a change to our margin model that aims to help significantly reduce the total cost of trading at Nord Pool, reducing collateral an average 30%.
Nord Pool’s Customer Advisory Board welcomed the changes as a positive development allowing for a reduction in the total cost of trading without compromising on robustness or counterparty risk.
Summary of changes:
- Reduction of the default day factor in the current risk model from 3 to 1.
- Introduction of an additional margin, using the customer’s highest observed net settlement value from the last 7 calendar days (min 0) to better capture actual financial exposure.
Our new margin model will go-live in production on 4 August.
Members can test the new model in the member test environment from 22 June.
If you need access to the member test environment or have any questions, please contact firstname.lastname@example.org.