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Nodal and IncubEx Expand Environmental Markets with Five New Contracts and Fourteen REC Vintage Extensions

Jun 2, 2020 | Press Release

Nodal Exchange today launched new North American environmental futures and options contracts on the Oregon Clean Fuels Program and renewable energy certificates (RECs).

New extended vintages on fourteen previously listed REC contracts were also implemented. The new Nodal contracts, developed in collaboration with IncubEx, further extend the broadest suite of environmental products in the world and builds on the 62 emission allowances, renewable energy certificates and renewable fuels futures and options now offered on Nodal. The newest addition to the renewable fuels product group on Nodal are the Oregon Clean Fuels Program (CFP) futures, a low carbon fuel standard futures contract that physically delivers CFP credits issued by the Oregon Department of Environmental Quality and corresponding options contracts on these futures.

The three new REC contracts include: Massachusetts Class II Waste To Energy (WTE) RECs, Massachusetts Alternative Energy Certificates and Pennsylvania Tier II Alternative Energy Certificates, each with vintages from 2019 to 2025. In addition, previously existing PJM Tri-Qualified RECs and Texas Compliance RECs vintages were extended out to 2030 from 2026 and 2022 respectively.

Also, vintages on the following fourteen previously existing REC futures were extended from 2025 out to 2030: Texas Compliance REC from CRS Listed Facilities Front-half and Back-half futures, Texas Compliance futures and options, Connecticut Class I futures, NEPOOL Dual Qualified futures, Massachusetts Class I futures, Maryland Tier I Vintage Specific futures and options, PJM Tri-Qualified futures, New Jersey Class I Vintage Specific futures and options, and Pennsylvania Tier I Alternative Energy Certificate Vintage Specific futures and options.

With the five new contracts, Nodal now offers 67 North American environmental contracts to its customers. The Oregon Clean Fuels Program contract complements the California Low Carbon Fuel Standard (LCFS) contract,the first-ever physically delivered LCFS contract.

“The new Oregon CFP and new REC contracts are another step in our ongoing effort to offer the most comprehensive set of environmental contracts anywhere,” said Dan Scarbrough, President and COO of IncubEx. “Open interest in the environmental products has reached 70,000 contracts in May on more than 90 distinct product codes. Even during these challenging times, these markets have performed well and continue to draw interest as a key commodity group. We will continue to focus on innovation and expand this product group based on feedback.”

“Nodal Exchange is proud to be able to offer the largest set of environmental futures and options contracts in the world,” said Paul Cusenza, Chairman and CEO of Nodal Exchange. “We are extremely pleased to be working with IncubEx to innovate and to contribute to the growth of the environmental markets in North America.”

About IncubEx

IncubEx is an incubator for products, services and technology solutions in environmental markets with partners and stakeholders to design and develop new financial markets, technologies and trading solutions in global environmental, climate risk, and related commodity markets. IncubEx serves as the operator of The Voluntary Climate Marketplace (TVCM). The company also works in conjunction with its global exchange partner, European Energy Exchange (EEX) and its U.S. subsidiary, Nodal Exchange. The IncubEx team is led by former key executives from Climate Exchange, which pioneered exchange listed environmental futures and options contracts and CCX, the world’s first and only voluntary, but legally binding greenhouse gas emission reduction and trading program. IncubEx, a privately held company founded in 2016 with offices in Chicago and London, is uniquely positioned to capture these opportunities globally with its partners. For more information, please visit https://theincubex.com/.

About Nodal Exchange

Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American commodities markets. Nodal Exchange is a leader in innovation, having introduced the world’s largest set of electric power locational (nodal) futures contracts and the world’s largest set of environmental contracts. As part of EEX Group, a group of companies serving international commodity markets, Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis risk management available to market participants. In addition, Nodal Exchange offers natural gas and environmental contracts. All Nodal Exchange contracts are cleared by Nodal Clear which is a CFTC registered derivatives clearing organization. Nodal Exchange is a designated contract market regulated by the CFTC. For more information, please visit www.nodalexchange.com.

Press Contacts:

NODAL EXCHANGE
Nicole Ricard
P: 703-962-9816
E: ricard@nodalexchange.com
www.nodalexchange.com

INCUBEX
Jim Kharouf
P: 773-391-0439
E: jim.kharouf@theincubex.com
www.theincubex.com

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