N2EX was formed in January 2010 in response to a Power Trading Forum tender aiming to establish a liquid and transparent UK power market providing a robust index price for power. In its four years of operation, N2EX has grown both in terms of membership and in volume of power traded on its auction – achieving trading volumes approaching 50% of Great Britain’s day-ahead consumption.
In pursuit of its long term ambition to provide consolidated intraday and day-ahead trading opportunities across multiple markets, Nord Pool Spot has now taken over N2EX clearing responsibilities for the short-term physical market. The transfer aims to replicate in the UK the successful Nordic wholesale power market model, with NASDAQ OMX operating the derivatives markets and Nord Pool Spot the short-term physical market.
Until October 1 N2EX was jointly operated by NASDAQ OMX Stockholm AB, providing clearing services, and Nord Pool Spot, operating the physical markets.
Confirming the successful takeover of N2EX, Mikael Lundin, CEO of Nord Pool Spot, said: “Nord Pool Spot has been at the heart of ensuring the success of the North Western European power market coupling and is determined to ensure our N2EX members reap the benefits of a more closely-coupled European market.
“Our successful takeover of N2EX allows us to refresh and expand our service offering to the UK market, provide economies of scale, consolidate IT infrastructure and collateral requirements and continue to lower barriers to entry, while developing a UK market with greater depth. We thank Nasdaq Commodities for a solid and successful partnership and wish them well with their future operations.”
Bjørn Sibbern, Head of Nasdaq Commodities, added. ““Nasdaq congratulates Nord Pool Spot on their acquisition of the N2EX clearing business and look forward to an ongoing successful cooperation between the companies. At Nasdaq we are proud of our involvement with the Market Design Project that has established the day- ahead auction as the prime benchmark for UK Power. We will continue to promote and develop our financial futures products that reference the daily N2EX auction price.”
Media contacts:
Stuart Disbrey, Communications Director UK, Nord Pool Spot AS, +44 7887 409 044, stuart.disbrey@npspot.com.
About N2EX
N2EX is the name of the UK power market offering from Nord Pool Spot.
About Nord Pool Spot
Nord Pool Spot operates Europe’s leading power markets, offering both day-ahead and intraday trading to its members. 370 companies from 20 countries trade on Nord Pool Spot’s markets in the Nordic and Baltic regions, and on our UK market N2EX. In 2013 the group had a total turnover of 493 TWh traded power. Our markets are operated from offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. Nord Pool Spot strives continually to strengthen its business by working with integrity, together with members and stakeholders, to achieve excellence.
For more information, visit www.nordpoolspot.com.
