EEX Acquires Nasdaq Futures
EEX Group and U.S. based Nasdaq Futures, Inc. (NFX) have successfully reached an agreement to sell NFX’s futures and options exchange business to EEX Group. EEX Group will acquire the core assets of NFX, including the portfolio of open interest in NFX contracts. The transaction involves the transfer of existing open positions in U.S. Power, U.S. Natural Gas, Crude Oil, Ferrous Metals and Dry Bulk Freight futures and options contracts to EEX Group’s clearing houses Nodal Clear and European Commodity Clearing (ECC).
— EEX Group (@eexgroup) November 12, 2019
The agreement signifies another major development for EEX Group’s global business as it continues to expand its presence in the U.S. energy markets and seaborne commodities sector.
Speaking on the announcement, Peter Reitz, EEX CEO comments: “This is a landmark deal for EEX Group as we continue to follow our global expansion strategy and one which will bring significant benefits for our client base worldwide by creating an even larger liquidity network and offering higher capital efficiencies.”
Kevin Kennedy, Senior Vice President of North American Market Services at Nasdaq adds: “Nasdaq entered the U.S. futures marketplace in response to clients who wanted to develop new ways to innovate around energy and freight trading. After evaluating the steady progress we made to expand our client base and grow open interest, the next step forward is for EEX and Nodal to continue this mission.”
The parties will now begin the necessary technical preparations to facilitate the open interest transfer to ensure that position holders experience a seamless transition. Both EEX Group and NFX are committed to ensuring that all NFX clients continue to receive excellent customer service during and following the transfer period.
Nodal and Nodal Clear plan to complete the integration of U.S. Power contracts by December 2019. EEX and ECC aim to complete the transfer of all open positions in Dry Bulk Freight by February 2020. U.S. Natural Gas, Crude Oil and Ferrous Metals contracts will transfer to Nodal in spring 2020.
“Nodal continues to grow its power futures market, and we expanded into natural gas in September,” comments Paul Cusenza, Chairman and CEO of Nodal Exchange and Nodal Clear. “We are extremely pleased to be able to build upon the business NFX successfully created, to further expand our products and services in power and gas and to introduce oil and ferrous metals contracts thereby further broadening the commodity markets we serve.”
Dr Tobias Paulun, EEX Chief Strategy Officer continues: “Since launching our Global Commodities business in 2016, we have continued to develop and expand our offering, thereby demonstrating our commitment in the seaborne commodities market. We have also seen a series of strategic developments across the business with the LCH freight novation and more recently the launch of EEX Asia being notable examples. Furthermore, ECC now serves as the clearing house for both EEX and EEX Asia, thereby offering our customers the choice of where they trade their freight products and manage their open interest. This agreement is a watershed moment for our business as we move forward, and further demonstrates our belief in this market”.
As a Global Commodities Exchange, EEX Group’s established presence in Europe, Asia and North America, ensures that it is ideally placed to promote and grow liquidity in the commodities sector worldwide with an established network of traders and brokers as well as a technical and regulatory offering which enables market participants across all time zones to access the benefits of the group’s trading and clearing services easily and efficiently.
The exchange will launch the first futures contracts based on Murban crude oil.
The exchange will trade the first futures contracts based on Murban crude oil.
The contracts are settled in US dollars and offshore renminbi.
The acquisition of the power market diversifies Euronext's revenue mix and reinforces its commodity franchise.
The exchange will work to replicate the Stock Connect model for commodities trading and clearing.