Financial market

Cash-settled power futures contracts

An N2EX referenced and cash-settled futures market with a full range of clearing services will open for trading during the second half of 2010.

The UK power futures contracts will be listed and traded on the commodity derivative exchange
Nord Pool ASA.

Nord Pool ASA, owned by NASDAQ OMX, is the world’s largest power derivative exchange with approximately 380 members.

Trading days will follow the UK banking calendar, and the N2EX referenced futures contracts will be traded in pound sterling.

Contract types

The contract types will be cash-settled pound sterling UK power futures listed for weeks, months, quarters and seasons (summer and winter).

The contracts will be cleared by NASDAQ OMX Stockholm AB and NASDAQ OMX Oslo. Electronic trading is conducted on the proven CLICK Trade/SECUR PI platform.

Time spread netting and inter-commodity spread credit

The clearing house NASDAQ OMX Stockholm AB may in some cases accept netting of initial margin between delivery periods for contracts in the same risk group (time spread netting).

The clearing house may also accept netting of initial margin for contracts in different markets (risk groups). This is also referred to as inter commodity spread credit.

The correlation between the contracts determines the possibility for time spread netting and inter commodity spread credit.

For more information about the parameters for time spread netting, please visit www.nordpool.com:

ICSS parameters

The parameters are updated regularly.

For more information about inter commodity spread credit, please visit:

Inter-commodity spread credit

Membership alternatives

Existing members at the Nord Pool financial market will be able to trade and clear UK power futures contracts under their existing memberships, but need to establish new bank accounts for settlement and collateral arrangements in the United Kingdom.

Members of N2EX must sign separate membership agreements for trading and clearing of the UK power futures contracts.