The European Energy Exchange (EEX), part of Deutsche Börse Group, has closed on its acquisition of Nodal Exchange.
Through this acquisition, EEX Group enters the North American energy trading markets, thereby expanding its global presence and membership base in line with its growth strategy.
“With the acquisition of Nodal Exchange we are taking the next step towards our vision of EEX Group as a global commodity exchange,” says Peter Reitz (pictured), chief executive officer of EEX.
“Nodal Exchange has enjoyed significant growth in recent years and we are very excited to build on this as part of EEX Group,” says Paul Cusenza, chairman and CEO of Nodal Exchange. “As a leading energy exchange in Europe, EEX is well positioned to contribute to our further development and provide us the opportunity to grow our current business, including natural gas, and expand into new products and geographies.”
Nodal Exchange is a regulated derivatives exchange which currently offers over 1,000 electric power and natural gas contracts on hundreds of unique locations allowing market participants to hedge against price risks in the US. All of the transactions on Nodal Exchange are cleared through its clearing house, Nodal Clear, a derivatives clearing organisation under the Commodity Exchange Act that is regulated by the US Commodity Futures Trading Commission (CFTC).
Nodal Exchange, which grew its North American power trading volumes 97 per cent in 2016 and 76 per cent in Q1 2017, has become a significant part of the North American power market with 28 per cent market share of open interest as of 31 March 2017 and 23 per cent market share of US monthly power futures traded volume in Q1 2017.
