ENERGY exchange EEX Group has announced an agreement with US-based Nasdaq Futures (NFX) to buy its futures and options exchange business.
The German-based European Energy Exchange, or EEX, is part of Deutsche Börse. It is expanding its presence in American energy markets and in sea-borne commodities. Under the deal, EEX will receive NFX’ core assets.
Existing open positions in US power, natural gas, crude oil, ferrous metals, dry bulk freight futures and options contracts will be transferred to EEX Group’s clearing houses, Nodal Clear and ECC.
The value of the transaction was not specified.
“This is a landmark deal for EEX Group as we continue to follow our global expansion strategy,” said EEX chief executive Peter Reitz. “It will bring significant benefits for our client base worldwide.”
Kevin Kennedy, Nasdaq senior vice-president of North American market services, said Nasdaq had entered US energy and freight markets in response to client wishes.
“After evaluating the steady progress we made to expand our client base and grow open interest, the next step forward is for EEX and Nodal to continue this mission,” he said.
Nodal Exchange and Nodal Clear will complete the integration of US power contracts by December, while EEX and ECC aim to complete the transfer of all open positions in dry bulk freight by February 2020.
US natural gas, crude oil and ferrous metals contracts will transfer to Nodal in spring 2020.
Commodities form a small part of Nasdaq offerings on equities, options, fixed income and derivatives, and the transaction adds considerable weight to for EEX’s global growth strategy.
EEX, originally a European electricity bourse, has recently acquired US peer Nodal, which added gas trading in September, and widened its access — also via its EEX Asia subsidiary — to all time zones.
This allows global price arbitrage as well as clearing and registry services, which in turn help to boost liquidity.
EEX platforms serve more than 600 participants trading energy, carbon, freight, metals and agricultural products.