London, 21 January 2013
N2EX is launching a Liquidity Pool for the clearing of OTC Prompt UK Power. Otherwise known as the OTR Platform the service offers automated realtime clearing of OTC physical contracts. The platform has proved a great success since the launch of N2EX with 38,438 GWh being cleared during 2012.
Clearing of the prompt market was one of the prime objectives of the Power Trading Forum’s RFP process that ultimately selected N2EX as the market provider for the GB Wholesale Power Market. N2EX are committed to the objective of standardizing clearing for the prompt market as part of its effort to build security and transparency and to encourage new entrants into the UK Power market.
The OTR platform:
- creates a single point of access for all N2EX members to face off to each other without the need for bilateral credit arrangements
- removes the need for costly GTMA setup between counterparties
- delivers guaranteed realtime novation for all trades
- provides an efficient margining and collateral system that removes 3rd party counterparty risk
- takes over responsibility for notification procedures towards Elexon
- produces free and transparent data and indices
The OTR Liquidity Pool is designed to further encourage the uptake of centralized clearing through the introduction of an affordable fixed monthly fee of 5,000 GBP per month per member for all OTR cleared volumes.
N2EX members are encouraged to register their interest for this scheme via email. Such notice is required by January 31st in order to participate for the month of February. Participation is open to all N2EX members and can be made at any date during the current month in order to take effect for the following one. Members’ are required to give three months notice before exiting the scheme.
General Terms of the Scheme:
- Monthly fixed fee of 5,000 GBP per member to be invoiced per calendar quarter in arrears
- OTR Pool members to pay zero variable fees on their OTR volumes at N2EX
- Formal membership of the OTR Pool to be requested during the month prior to activation and 3 months’ notice to be given before termination
Please register your interest via mail to jason.hall@nasdaqomx.com by 31 January.
For further information, please contact N2EX:
Jason Hall, UK Business manager, phone: +46 8405 7848/+46 7 3449 7848 Jason.hall@nasdaqomx.com
Media contacts:
Sara Aadnesen, Director Corporate Communications, NASDAQ OMX Commodities and N2EX, phone: +47 6752 8080/+47 9060 0759, sara.aadnesen@nasdaqomx.com
Stuart Disbrey, Communications Manager UK, phone: +44 207 065 7042/+44 7887 409 044, sd@npspot.com
About N2EX
N2EX is the name of the UK power market offering from Nord Pool Spot and NASDAQ OMX Commodities. NASDAQ OMX Clearing is the authorized clearinghouse.
The web site www.n2ex.com provides market information and documentation for the UK power market.
About Nord Pool Spot
Nord Pool Spot runs the leading power market in Europe and offers both day-ahead and intraday markets to its members. 350 companies from 20 countries trade on the market. The Nord Pool Spot group has offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. In 2011 the group had a total turnover of 316 TWh, which includes the auction volume in the UK market N2EX.
For more information, visit www.nordpoolspot.com.
About NASDAQ OMX Commodities
NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.
NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.
NASDAQ OMX Clearing is the trade name of NASDAQ OMX Stockholm AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
NASDAQ OMX Commodities has nearly 350 members from over 15 countries covering a wide range of energy producers, consumers and financial institutions.
For more information, please visit www.nasdaqomx.com/commodities
This document is being directed solely at and may only be communicated to persons: (i) who have professional experience in matters relating to investments as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO") or, (ii) who are high net worth companies, unincorporated associations and trustees of high value trusts within Article 49(2)(a)-(d) of the FPO, or (iii) to whom it may otherwise be lawful to distribute it (all such persons together being referred to as "Relevant Persons"). Any investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Person.