Euronext and Nord Pool Unveil New Power Futures Market for Nordic and Baltic Regions

Euronext and Nord Pool Unveil New Power Futures Market for Nordic and Baltic Regions

(IN BRIEF) Euronext and Nord Pool have announced the launch of a new Nordic and Baltic power derivatives market, named Euronext Nord Pool Power Futures. The market will be hosted on Euronext’s Optiq® trading platform and cleared by Euronext Clearing. This initiative, which follows extensive consultations with market participants, aims to provide a stable and sustainable trading environment for power futures in the Nordic and Baltic regions. The new market will offer cash-settled futures for various maturities and is expected to attract significant interest from the energy sector.

(PRESS RELEASE) AMSTERDAM/BRUSSELS/DUBLIN/LISBON/MILAN/OSLO/PARIS, 27-Aug-2024 — /EuropaWire/ — /EuropaWire/ — Euronext and Nord Pool, the prominent European power market, are joining forces to introduce a new power derivatives market tailored for the Nordic and Baltic regions. This initiative marks a significant expansion of Nord Pool’s business, designed to meet the increasing demand for a stable and secure power futures trading environment.

The newly launched Euronext Nord Pool Power Futures market will be hosted on Euronext’s advanced Optiq® trading platform and cleared through Euronext Clearing. This development follows extensive consultations with key market participants, reflecting the need for a robust and sustainable market infrastructure dedicated to the Nordic and Baltic power sectors.

Set to offer trading in cash-settled futures across various maturities, the market will focus on System Price and EPADs (Electricity Price Area Differentials), with underlying spot indices provided by Nord Pool. Client testing is expected to begin in March 2025, paving the way for full market operations.

Camille Beudin, Head of Diversified Services at Euronext and Chairman of the Board at Nord Pool, emphasized the strategic importance of this launch, stating, “By combining Euronext’s expertise in energy markets with Nord Pool’s strong Nordic foundation, we are creating a competitive and attractive platform for power futures trading.”

Tom Darell, CEO of Nord Pool, highlighted the market’s potential, noting, “With the Nordic and Baltic power markets recovering from recent challenges, this initiative will be crucial in restoring and enhancing liquidity in the power derivatives market, ensuring a stable and liquid futures market for the region.”

This collaboration between Euronext and Nord Pool is expected to attract significant interest from key players in the Nordic and Baltic power sectors, driving growth and stability in the region’s energy markets.

About Euronext
Euronext is the leading pan-European market infrastructure, connecting European economies to global capital markets, to accelerate innovation and sustainable growth. It operates regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. With nearly 1,900 listed issuers and around €6.5 trillion in market capitalisation as of end June 2024, it has an unmatched blue-chip franchise and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets, one of Europe’s leading electronic fixed income trading markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. The Group provides a multi-asset clearing house through Euronext Clearing, and custody and settlement services through Euronext Securities central securities depositories in Denmark, Italy, Norway and Portugal. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, it also operates a number of junior markets, simplifying access to listing for SMEs.

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SOURCE: Euronext