In response to changing market conditions, extensive market consultation and client demand, Nasdaq Commodities will coordinate a migration of liquidity from the DS Futures contracts to the Futures contracts in Nordic Electricity. This is done to further improve a well-functioning market structure and to attract broader participation to the market by focusing on a more standardised product offering.
Effective from November, 2016, (final date to be decided) Market Makers (MMs) will move all quotations for System Nordic Electricity DS Futures contracts to Nordic Electricity Futures contracts.
Nasdaq Commodities is committed to continuously work jointly with market participants to build on the Nordic market legacy as the model market for financial power trading globally. The move to the Futures contracts is a natural evolution in order to widen product distribution and reduce barriers to trade thereby supporting the overall activity and liquidity in the Nordic power market.
“SEB supports Nasdaq’s initiative to make the Futures contracts the primary trading product for Nordic power,” said Tomas Engel, Co-Head Derivatives Clearing & Head of Sales, SEB. “We see a strong demand for Futures contracts and are positive that this will attract new players to the Nordic power market. In order to attract new liquidity it’s important that Nasdaq develop the Exchange in line with international markets with focus on a product offering with strong liquidity. This will be a great solution for the market in the long run”.
Ola Kvennås, Head of Nordic Trading, Statkraft Energi AS, said: “At Statkraft we welcome Nasdaq’s initiative and believe that such a switch will benefit the Nordic power market liquidity going forward.”
Georg Aasen, President Nasdaq Oslo ASA, said: “Nasdaq Commodities is always committed to do what is best for the Nordic power market. We are now taking the lead in enhancing a proven solution for the future of the market. We recognize that this transition will affect some of our clients, but are convinced after much market consultation that this is the best way forward for the overall Nordic power market.”
Participants who wish to move open interest from DS Futures to Futures Contracts will be given free trading and clearing fee for Nordic Electricity DS Futures/Futures standard combination orders (COMBOs), effective September 19 until June 30, 2017. The reduced fee will automatically apply for trading in the Electronic Trading System ETS/MTS. For Block and EFS/EFP Trade Registration please use Block Trade Type 14.
Nasdaq Commodities will continue to offer DS Futures to support the hedging needs of fundamental participants.
For further information, please contact Nasdaq Commodities:
Georg Aasen, President, Nasdaq Oslo ASA, phone +47 6752 8076, georg.aasen@nasdaq.com
Anne-Marit Rudby, Product Director Commodities, phone +47 91580323, anne-marit.rudby@nasdaq.com
Exchange/Marketplace, phone +47 6752 8037, desken@nasdaq.com
Media contact:
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, sara.aadnesen@nasdaq.com
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,600 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or www.nasdaqomx.com.
About Nasdaq Commodities
Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
Nasdaq Oslo ASA is the commodity derivatives exchange authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with Nasdaq Oslo ASA are subject to clearing with Nasdaq Clearing.
About Nasdaq Clearing
Nasdaq Clearing is the trade name of Nasdaq Clearing AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
For more information, visit www.nasdaqomx.com/commodities
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