NASDAQ OMX Commodities Launches European Price Area Contracts, Extends Nordic CfD Product Suite And Introduces Pre-Trade Risk Management Tools

16/04/2013

NASDAQ OMX Commodities is pleased to announce the launch of new instruments and functionality in Genium INET. Genium INET will be upgraded to version 0230 during the weekend 8-9 June, 2013. Thereafter, subject to successful testing and regulatory approval, the enhancements listed below will be activated for members according to a detailed time plan which will be published in due course.

Launch of European price area contracts
Subject to successful testing and regulatory approval, NASDAQ OMX Commodities will launch a suite of monthly, quarterly and yearly Contracts for Difference (CfD) contracts. Both Forwards and Futures will be listed. The CfD will enable traders from Continental European power markets to hedge the basis risk between the German system price and neighbouring price areas by trading the relevant CfD. Contracts will initially be listed for the Czech, Dutch, French and Belgian price areas. For each area, there will be 3 monthly, 3 quarterly and 2 yearly contracts available. The product calendar will be updated to reflect the launch of these products in due course.

Introduction of Finnish and Swedish Week Contracts for Difference
Subject to successful testing and regulatory approval, NASDAQ OMX Commodities will introduce Finnish and Swedish Week CfD contracts. The Finnish price area (HEL) and Swedish price areas (MAL, STO, SUN, LUL) Forward CfD curves will now cover 5 weekly, 4 monthly, 4 quarterly and 4 yearly contracts. The product calendar will be updated to reflect the launch of these products in due course.

Pre-Trade Risk Management
Subject to successful testing and regulatory approval, NASDAQ OMX Commodities will provide members with optional Pre-trade Risk Management controls in Genium INET. Using the PRM service, members can have order level control of their trading activity and the trading activity of their clients including prevention of potentially erroneous transactions. PRM has been tailored specifically for General Clearing Members’ needs; however, the service also meets the needs for improving pre-trade protection for any member. Details regarding this feature will be provided in the near future. Please contact your key account manager to get the latest information.

External test activities
NASDAQ OMX Commodities encourages members and Independent Software Vendors (ISVs) to access Genium INET External Test System 2 to test the new features. The test environment will be available from May 2nd onwards.

Member extranet
The member extranet http://nordic.nasdaqomxtrader.com/memberextranet/genium_inet/ is updated at all times with the latest Genium INET related documentation.

The market model document (Appendix A and section 7.9) will be updated with the above mentioned changes.