CFTC approves ElectronX as designated contract market

The power futures platform said on Friday its small-sized, fully collateralised derivatives contracts will allow all types of market participants to hedge intraday price risk upon launch of contracts later this year.

Sam Tegel, chief executive officer of ElectronX, said: "We are pleased to join the CFTC's storied roster of transparent commodity markets born from an acute need for economic risk transfer. Meeting the high standards required of DCM and DCO status is a significant milestone for our business.”

“Throughout the application process, we've received consistent feedback from energy trading participants voicing the need for new ways to manage uncertainty in today's power market, and we can now provide those innovative solutions through an exchange and clearing house with globally recognised integrity."

ElectronX said its first products will include intraday bounded futures and binary options for the Electric Reliability Council of Texas (ERCOT) market, followed by tailored power derivatives for grid operators, planned for next year.

The energy exchange said it has raised since 2024 $25 million (£18.47million) in strategic funding from energy venture capital firms including Innovation Endeavors, Systemiq Capital, Equinor Ventures and Lightning Capital.

The power market said in March it planned to launch a suite of bounded futures that allow participants to take precise positions for extremely short-term market moves.

ElectronX appointed former CFTC chair Christopher Giancarlo as its advisor in February.

European Energy Exchange (EEX) said this month it plans to launch more regional Japanese power futures.

Multi Commodity Exchange of India and its competitor National Stock Exchange of India launched their first independent electricity futures contracts in July.