The European Energy Exchange (EEX) is to acquire US-based Nodal Exchange for a low triple digit million US-Dollar investment.
As a result, Nodal Exchange will become part of EEX Group.
Nodal Exchange, headquartered in Virginia, is a regulated futures exchange which offers a variety of electricity and natural gas contracts to hedge against price risks in the US. All of the transactions on Nodal Exchange are cleared through its clearinghouse, Nodal Clear, a derivatives clearing organisation under the Commodity Exchange Act that is regulated by the US Commodity Futures Trading Commission (CFTC).
Through this acquisition, EEX Group will enter the North American energy trading markets, thereby expanding its global presence and membership base in line with its growth strategy.
“EEX Group has enjoyed continued growth in the last few years. In order to facilitate further success, we will continue to improve our customers’ trading experience in addition to expanding our business, both in terms of product innovation and geographical reach. Our ultimate ambition for EEX Group is to become a truly global commodity exchange. In this context, the acquisition of Nodal Exchange is a major milestone,” says Peter Reitz (pictured), chief executive officer of EEX.
“Nodal Exchange grew its North American power trading volumes 97 per cent in 2016 and we are keen to continue our growth. With its track record in European energy markets, EEX Group is well positioned to contribute to our further development and provide us the opportunity to expand into new products, regions and jurisdictions. I am excited for the opportunity to continue to lead Nodal Exchange as part of the EEX Group,” says Paul Cusenza, chairman and CEO of Nodal Exchange.
