The Nasdaq energy exchange launched a year ago with a target of 10% market share in its first two years
The chief of Nasdaq Futures plans to offer
hedging capabilities and expand the energy market's product
range to challenge CME Group and the Intercontinental Exchange
for their flagship energy contracts
The Nasdaq exchange launched one year ago
25 energy futures and options contracts and has added to this
list over the past 12 months - with NFX now offering more than
110 products - but the Merc and ICE still dominate the US and
European oil markets with their brent, gas oil and WTI
The recently-appointed chief executive
officer of NFX, Rick Beaman, told FOW that in order to build
volumes in these benchmarks, WTI hedges are on the horizon for
launch "in the fall," with further products and hedging options
to "support the markets across these benchmarks in financial
futures to physical players".
"Hedges are typically very expensive at
the incumbents so being able to offer a range – at
significantly lower cost – will help to attract
participation in these contracts," added Beaman.
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