NASDAQ OMX Commodities

Launch of NASDAQ OMX Commodities

 
The NASDAQ OMX Group, Inc. completed the acquisition of Nord Pool International AS which consists of Nord Pool ASA’s clearing, international derivatives and consulting subsidiaries in October 2008.  The new offering, ‘NASDAQ OMX Commodities’, will be based on Nord Pool’s energy and carbon derivatives products. Nord Pool International was the group name of the acquired companies before the change of ownership.

The ambition is to create a global leader in energy derivatives and carbon products

See http://www.nasdaqomx.com/commodities

Short facts about NASDAQ OMX Commodities:

What does the transaction entail? 
NASDAQ OMX is acquiring the clearing operations of all power derivatives and carbon products traded at Nord Pool. NASDAQ OMX is also acquiring Nord Pool’s international (Dutch and German) power derivatives, all carbon emission products, and the Nord Pool Consulting business.

What is the offer? 
As a result of the transaction, NASDAQ OMX will be able offer our members access to trading and clearing of Nordic, Dutch and German power derivatives, as well as carbon emission instruments under the name of NASDAQ OMX Commodities.

To whom? 
The products are designed for:
•  Financial customers as banks, brokers, hedge funds and other financial institutions.
•  Fundamental customers as power utilities, industry, manufacturing and oil companies

When? 
•  When seeking alternative investment possibilities
•  When hedging power contracts
•  When selling/buying carbon quotas
•  When seeking reduction of employed capital, counterparty risk and administration

What advantages does NASDAQ OMX offer? 

• We offer access to the most liquid market for Nordic power derivatives
- 50 % of cleared Nordic power volumes at Nord Pool are traded on the exchange
- Almost 100 % of all Nordic power volumes are cleared through Nord Pool 
•  We offer access to a transparent and mature commodity market
- EU 2007: Nord Pool is Europe’s most well functioning power market  
• We offer expertise and knowledge from being at the forefront of the power market for 15 years

How do we improve the customers business? 

• More efficient transactions for customers through one entry point - within its existing membership, a member will get access new asset classes and new commodity instruments
• Within existing membership, members can broaden its customer offering to include commodities.
• Through clearing services members can reduce capital employed, counterparty risk and administration

Organization
- Business unit “NASDAQ OMX Commodities” within NASDAQ OMX, including ownership of Nord Pool Clearing ASA and Nord Pool Consulting AS.

Business areas:
- Trading and clearing of Power and Carbon products
- Consultancy services within the power sector
- Market Data Services for the power market

NASDAQ OMX will offer access to:
Power:
- The world’s first power exchange for an integrated market – established in 1993
- The world’s largest power derivatives exchange (standardized contracts) in terms of:
- Traded and cleared power volumes 2 564 TWh (2008)

Number of members:
390

Exchange liquidity 
- 50 % market share of cleared Nordic volumes

Carbon:
- The first exchange worldwide to list carbon allowances (EUA) and carbon credits (CER)
- One of Europe’s largest market places for carbon trading
- Carbon index launched in June 2008

Power technology and consulting services
- Contribution for power market development in + 65 countries worldwide

Market Data Services
- Comprehensive statistic database of power trading in the Nordic area since 1993
- Real time services for market participants and information distributors

Goal 
Aiming to be a global leader within energy derivatives through a well-functioning and efficient market based on liquidity, innovation, openness, transparency and trust.