Euronext and European power market Nord Pool have agreed to jointly launch a dedicated Nordic and Baltic power derivatives market, the Euronext Nord Pool Power Futures market.
The Euronext Nord Pool Power Futures market will be traded on Euronext’s pan-European Optiq trading platform and cleared by Euronext Clearing and will serve as a long-standing, sustainable market infrastructure committed to developing secure power futures trading in the Nordic and Baltic regions, with a strong Nordic foundation.
Cash-settled futures for all maturities on System Price and EPADs
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. Client testing will open as soon as March 2025, the firms announced.
Camille Beudin, Head of Diversified Services at Euronext, and Chairman of the Board of Directors 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.”
Tom Darell, CEO at Nord Pool, said: “Nord Pool and Euronext are absolutely committed to deliver 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.”
TT connected to European physical power markets
Earlier this year, Trading Technologies connected to the European Power Exchange (EPEX SPOT) to allow clients to access and trade within the European physical power markets directly through the TT platform.
From now on, TT users can engage in continuous intraday power trading – with advanced trading tools such as algorithmic trading capabilities and comprehensive risk management features – in collaboration with a significant European energy supplier, offered as a fully co-located service to clients worldwide.
EPEX SPOT, based in Paris and operating as an independent entity under the European Energy Exchange (EEX), spans power markets across multiple European countries including Austria, Belgium, Denmark, Germany, Finland, France, Luxembourg, the Netherlands, Norway, Poland, Sweden, the UK, and Switzerland.
The European electric power exchange provides a liquidity outlet for producers, suppliers and transmission system operators, as well as for industrial consumers, to fulfill their sales or purchases in short-term power.
The prices serve as a benchmark for the transactions of the wholesale market, ensuring competitive prices for European end-consumers who can choose between numerous electricity suppliers.
