Nodal Exchange, LCH launch natural gas contracts

Nodal Exchange, LLC and LCH.Clearnet Ltd (LCH.Clearnet) have extended expiries by 20 months to current month plus 68 months forward on all the hubs and zones currently offered in Nodal Exchange’s daily auction, as well as on their Henry Hub natural gas contract.

Two new contracts, Indiana Hub and MISO Energy, have also been introduced to support the market’s transition away from Cinergy Hub. Indiana Hub is a new hub in the Midwest Independent Transmission System Operator (Midwest ISO) network, and MISO Energy is the energy component of Locational Marginal Price (LMP), the others being congestion and loss, which is the same across the Midwest ISO for all locations. These new contracts, which are also available for current month plus 68 months forward, allow MISO participants to hedge risk and both will be available for either Day Ahead or Real Time settlement.

“We are pleased that we continue to be able to expand our contract offerings to meet the evolving needs of our market,” said Paul Cusenza, Chief Executive Officer of Nodal Exchange. “The continued product expansion and extension of expiries reflects the success of Nodal Exchange and LCH.Clearnet in bringing innovation to the market in the two years since launch.”

Alberto Pravettoni, Managing Director, LCH.Clearnet said: "The nodal system has introduced major benefits to the US power markets such as increased transparency and more accurate pricing. The support and interaction that we have with participants has been invaluable to the ongoing development of this service, and we look forward to continuing to build on these relationships."

Since its launch in 2009, Nodal Exchange has introduced over 60,000 expiries on over 3,600 Day Ahead and over 100 Real Time settled power contracts. In addition, the company also offers a contract on Henry Hub for natural gas. All Nodal Exchange contracts are financially settled.

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