On Sept. 24, the Commodity Futures Trading Commission issued an order granting Nodal Clear registration as a derivatives clearing organization. The order clears the way for Nodal Clear to provide clearing services for ﬁnancially settled futures and options on futures executed on or through its afﬁliate, Nodal Exchange.
Nodal Clear is the ﬁrst U.S. clearinghouse to voluntarily comply with the enhanced regulatory framework established for systemically important clearinghouses. CFTC Chairman Tim Massad issued a statement commending Nodal for meeting the CFTC’s requirements and providing “additional clearing opportunity for energy market participants.”
Nodal Exchange is based outside Washington, D.C. and offers derivatives based on electricity prices at various locations in the U.S. Since it began trading in 2009, Nodal Exchange has relied on LCH.Clearnet for its clearing services. The exchange plans to transition to Nodal Clear in mid-October.