To strengthen the liquidity in the Nordic Power market, Nasdaq Commodities will run a tender for a new Liquidity Provider Program (LPP). The program will require the members of the LPP to quote spreads on the Exchange order book during two defined hourly trading windows each trading day. By this we aim to improve the spreads and activity during these trading windows.
The obligations for Liquidity providers:
The liquidity providers will commit to quote a predefined spread on the nearest quarter and year futures contracts for Nordic power on the Exchange order book during the hourly trading windows each trading day.
During the tender process, we will define the following:
- Time of the two trading windows (Example: 09:00-10:00 CET and 13:00-14:00 CET)
- The required max spreads in normal and stressed market and minimum order volumes.
Nasdaq Commodities aims to run the program for a period of 6 months. After the 6 month period Nasdaq will evaluate the program and the need to continue the program further.
We aim to start the program as soon as possible, but this will depend on the tender process and member readiness.
As a consequence, the current incentive program for the Nordic and German Electricity Market will be phased out effective December 1, 2018. This change is reflected in the Joint Trading and Clearing Appendix 7 – Fee List section 3.4. Blacklined version of Joint Trading and Clearing Appendix / Fee List can be found here:
https://business.nasdaq.com/trade/commodities/regulation/legal-framework.html
For those interested to learn more about the program and engage in the tender process, please contact Nasdaq Commodities by 30 November:
Knut Rabbe, Head of Sales, +47 67 52 8032, knut.rabbe@nasdaq.com
Frank Lien, Head of Market Place, +47 67 52 8031, frank.lien@nasdaq.com
Media contact:
David Augustsson, Director Corporate Communications, phone +46 8 405 6135, david.augussson@nasdaq.com
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 100 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to over 4,000 total listings with a market value of approximately $15 trillion.
To learn more, visit business.nasdaq.com
About Nasdaq Commodities
Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
Nasdaq Oslo ASA is the commodity derivatives exchange authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with Nasdaq Oslo ASA are subject to clearing with Nasdaq Clearing.
About Nasdaq Clearing
Nasdaq Clearing is the trade name of Nasdaq Clearing 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.
For more information, visit www.nasdaqomx.com/commodities
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