Power futures and options for convenient trading and hedging
Nasdaq Commodities offers a broad range of power futures and options that help power traders, producers, distributors, and retailers to manage price risks. Our flexible membership model is designed to suit different trading and clearing needs.
Our Products
We offer base and peak load futures, deferred settlement futures (DS Futures), monthly DS futures, options and Electricity Price Area Differentials (EPADs). These contracts are used for trading and clearing, and all power contracts are financially settled.
Futures
We offer trading and clearing of base and peak load futures contracts that are tradable in the spot reference/delivery periods, where they carry the full contract size. The contracts have daily mark-to-market settlement through the entire trading period which includes the spot reference period. The settlement of the final expiration day is calculated as the average of all the spot reference fixing prices in the spot reference period.
We offer trading and clearing of futures contracts in the:
✓ Nordic Market
✓ German Market
✓ French Market
DS Futures
We offer trading and clearing of base load DS futures contracts. Mark to market value is accumulated during the trading period and settled in the delivery period.
Monthly DS Futures
We offer trading and clearing of base, peak, off-peak and hourly block monthly DS futures contracts enhancing the efficiency between physical and financial markets. With their unique settlement structure, they provide the same cash flow as for the physical contracts.
The monthly DS futures are designed as deferred settlement futures with monthly cash settlement where mark to market value is accumulated during the trading period and cash settlement on the 20th day of the immediately following calendar month.
Options
An option is a right to buy or sell an underlying contract (Future) at a predetermined price at a predefined date in the future. Options contracts in combination with other Nasdaq commodity derivatives are valuable tools to manage risk and for hedging strategies.
We offer the trading and clearing of option contracts (European style) in the:
✓ Nordic Market
✓ German Market
Electricity Price Area Differentials (EPADs)
EPADs are futures referencing the difference between an area price and an index (such as the Nordic system price) and allow members to hedge against the price risk. Area prices may be different from the system price when there are constraints in the transmission grid.
Calculation: => Area price minus system price (result can be positive, zero or negative)
We offer the trading and clearing of EPADs contracts in the:
✓ Nordic Market
✓ Baltic Market (Latvia and Estonia)
Fee Holiday for Electricity Price Area Differential (EPAD) Contracts
In order to address customer interest for hedging both the Nordic system price (system) and the area price in the Nordic power market, Nasdaq Commodities has decided to introduce a fee holiday for the EPAD contract executed directly in a one-sided combination (system and EPAD) transaction in ETS.
The fee holiday is effective until September 30, 2025.
For more information, refer to our contract specifications.
Nordic European Power Resources
Resource Center
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- Market Maker Agreement template
- Holiday Calendar
- Genium INET Market Model - Commodities
- One-Sided Combinations One-Pager
- Joint Appendix 2 - Contract Specifications (joint Clearing and Trading Rules)
- Joint Appendix 3 - Trading and Clearing Schedule (joint Clearing and Trading Rules)
- Nasdaq Commodities LIS update - June 1, 2024
- Vendor Codes, German and Nordic Power (XLS)
Key Benefits with Nasdaq Power Derivatives
Manage power price risks
Hedge your electricity contracts using our power futures and options. We offer a variety of derivatives to match the different needs of power producers & distributors, power consumers and power traders on the European power market.
Excellent liquidity
Nasdaq Commodities offer excellent liquidity on trading of power futures and options. Our clearing house, Nasdaq Clearing, is one of the largest CCPs for power derivatives in Europe.
Capable trading system
We offer one of the fastest and most functionally complete trading systems in the world and modern technical infrastructure with low latency.
More Insights
Pre-Trade Transparency & RFQ Trading System
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Question and Answers regarding Pre-Trade Transparency and the RFQ Trading System (RFQS).
Clearing & Netting by Nasdaq Clearing
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Nasdaq Clearing is used for clearing of all power derivatives trading at the Nasdaq Commodities market, eliminating your counterparty credit risks. Nasdaq Clearing automatically applies netting and margin offsets between all markets, minimize the number of transactions needed. This simplifies back-office operations for frequent traders.
Nasdaq Commodities Market Activity and News
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See Today's trading data and history, and find news and messages by European Commodities.
Learn More About Our Power Products
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