September 27, 2013

CFTC Designates Nodal Exchange, LLC as a Contract Market and CFTC’s Division of Market Oversight and Division of Clearing and Risk Issue Related Time Limited No-Action Letters

Washington, DC - The Commodity Futures Trading Commission (CFTC) on Friday, September 27, 2013, approved the application of Nodal Exchange, LLC (Nodal), previously operating as an exempt commercial market (ECM), for designation as a contract market (DCM), effective September 30, 2013. Nodal is organized as a Delaware limited liability company and is a wholly owned subsidiary of Nodal Exchange Holdings, LLC.

Nodal DCM is listing for trading various power futures contracts and options on power futures contracts. In conjunction with the approval of Nodal’s designation, the Commission approved the transfer of contracts and open interest in contracts currently listed on the ECM to the DCM. Separately, the Division of Market Oversight (DMO) provided no-action relief to Nodal to allow for the simultaneous listing and trading of contracts on Nodal’s first date of operation as a DCM, as Nodal transitions from its operating status as an ECM to a DCM.

Clearing services for Nodal will continue to be provided by LCH.Clearnet Ltd (LCH). DMO and the Division of Clearing and Risk provided no-action relief to Nodal and LCH to permit LCH to continue clearing Nodal contracts until such time as LCH obtains an amended Derivatives Clearing Organization order of registration that would authorize LCH to clear contracts traded on the Nodal DCM.

Last Updated: September 27, 2013