Nodal Provides First Ever Physical Delivery; Strong Debut for Environmental Contracts

Nodal Exchange provided its first ever physical delivery of physical futures from the exchange last month with carbon allowances from California carbon and RGGI futures contracts.

The first delivery on December 28, 2018 of nearly 1,000 contracts (the equivalent of 1 million tons of carbon dioxide), carried a notional value of $1.55 million for California carbon allowances and $4.08 million for RGGI allowances.

Previously, Nodal offered power and natural gas futures contracts that are financially settled. The environmental futures contracts are physically deliverable, which means the allowances are transferred from the registry of the account of the selling member to the trading account of the buying member.

The allowances were transferred on time from the California CITSS and RGGI COATS registries. The delivery marks a milestone in a strong debut for Nodal’s environmental contracts, developed in cooperation with IncubEx. The environmental suite of products featured trading on 19 contract codes. Open interest now stands at more than 5,000 contracts across carbon and renewable energy credit futures.