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Nodal and incubEx expand the world’s largest exchange-listed environmental derivatives suite to 100 distinct contracts

Nodal and incubEx expand the world’s largest exchange-listed environmental derivatives suite to 100 distinct contracts

WASHINGTON AND CHICAGO–(BUSINESS WIRE)–Nodal Exchange and IncubEx today announced the upcoming launch of four brand new environmental futures on January 7, 2022, bringing the largest market for environmental products in the world to 100 futures and options contracts.

Nodal will list futures contracts physically delivered on:

  • California Carbon Offset 8 Futures
  • California Carbon Offset 0 Futures
  • Futures on Maine Class 1A REC Futures
  • Massachusetts CES-E Futures

Nodal will also extend existing vintages for 16 futures and five options, including:

  • California Carbon Allowances (V26-30 Futures and Options)
  • RGGI (V26-30 Futures and Options)
  • DC Solar RECs (V27-V30 Futures)
  • Massachusetts REC Class 2 (V26-30 Futures)
  • Massachusetts SREC Carve Out 2 – V28-V30 Futures Options and Futures)
  • Massachusetts APS Futures V27-V30 Futures
  • Maine REC Class 1, V26-V30 Futures
  • M-RETS CRS Wind REC – Front-half, Back-half (V26-30 futures)
  • New York Tier 1 REC (V26-V30 Futures)
  • Ohio Non-Solar REC (V27-V30 Futures)
  • Ohio Solar REC (V24-V26 Futures)
  • Pennsylvania AEC Tier 2 – V27-V30 Futures
  • Pennsylvania SAEC (V28 – V30 futures and options)
  • New Jersey Class 2 REC, V26-V30 Futures
  • Texas Compliance REC Front-half and Back Half (V34-V35 Futures).
  • Texas CRS Solar REC, Back-half, and Front-half (V31 – V35 Futures, v21 – v25 Options)

California Carbon Offset contracts represent an expansion of Nodals already existing California environmental product suite, which includes California Carbon Allowance (CCA), Futures and Options and Low Carbon Fuel Standard(LCFS) Futures and Options and Portfolio content category (PCC3) 3 Futures. California Carbon Offset 8 Futures as well as California Offset 0 Futures both require physical delivery carbon offsets to be issued by CARB under the California Cap-and-Trade Program.

The largest collection of REC futures on any exchange is comprised of the Maine Class 1A and Massachusetts CES–E Futures.

“These new products further reflect our focus on working alongside customers and Nodal Exchange in order to deliver products based upon market feedback,” said Dan Scarbrough (President and COO of IncubEx). “There is no doubt that environmental markets are experiencing unprecedented tailwinds, interest, and this has increased the need for innovative risk management solutions.”

The new contracts expand the range of environmental products that are exchange-listed worldwide and add to the existing Nodal futures and options for carbon, REC and renewable energy credit futures. Nodal will launch 100 futures- and options-based environmental contracts. 54 of these are exclusive to Nodal.

Paul Cusenza (Chairman and CEO of Nodal Exchange) stated that Nodal Exchange has the largest global environmental market and continues to grow volumes and open interest in its products. “Open interest in our environmental markets reached a record 180,000 and the total notional amount traded in the products was over $1.8 billion by 2021. We look forward building these markets further with IncubEx, our customers, and in 2022.”

About IncubEx

See Also

IncubEx works with global partners, top service providers, and stakeholders to develop products, services, and technology solutions in global climate risk, global environmental, and related commodity markets. IncubEx, a privately owned company, has the largest global range of listed environmental products. Its exchange partners at EEX (Nodal Exchange) and Trayport operate The Voluntary Climate Marketplace, which is the parent company for Insurwave. IncubEx was founded in 2016 and has offices in London and Chicago. It is uniquely placed to take advantage of these opportunities worldwide with its partners. Visit www.IncubEx.com for more information. https://theincubex.com/.

About Nodal

Nodal Exchange is a North American derivatives exchange that provides price, liquidity and credit risk management solutions for participants in the North American commodity markets. Nodal Exchange has the largest collection of nodal electric power locational (nodal), futures contracts in the world. This makes them a leader in innovation. Nodal Exchange, a company that serves international commodity markets, currently offers over 1000 contracts in hundreds unique locations. This provides market participants with the most effective basis risk management. Nodal Exchange also offers natural gas and environmental contracts. Nodal Clear, a CFTC-registered derivatives clearing agency, clears all Nodal Exchange contracts. Nodal Exchange has been designated as a contract market and is regulated under the CFTC.

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