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Those who claim it is cheaper to engage in derivatives over the counter than through a central clearing counterparty are not taking the cost of credit risk into account, according to a study by the European Energy Exchange.
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N2eX, the power exchange venture run by Nasdaq OMX and Nord Pool, will launch futures “within six months”, according to Geir Reigstad, president of Nasdaq OMX Commodities.
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The UK arm of French brokerage Newedge has joined US power market Nodal Exchange, via its membership of LCH. Clearnet, Nodal Exchange was launched on April 8 last year, becoming the first exchange to offer locational futures contracts and related services to the US power market, with LCH.Clearnet as its central counterparty clearing house. Newedge becomes the seventh general clearing member to support trading on the exchange.
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CME Group has agreed a seven year licensing deal with the Chicago Board Options Exchange, under which CBOE will create new volatility indices for commodities traded at CME.