New York-based Nasdaq launched Nasdaq Futures Inc. (NFX), a new energy derivatives trading platform, on Friday in a move to further diversify into new asset classes.
The new trading venue will initially offer futures and options on oil, natural gas and U.S. power benchmarks. It boasts a transparent central limit order book, real-time trade reporting and pre-trade risk management capabilities. It’s also being launched without fees for the first nine months of trading.
“NFX was born out of strong customer demand and a confidence in Nasdaq’s ability to deliver an innovative technology solution,” says Hans-Ole Jochumsen, president of Nasdaq, in a statement. “We truly believe that competition drives innovation, and that the energy futures market is ready for our more transparent pricing model.”
This move into energy derivatives is the latest step in building Nasdaq’s global derivatives business. Its existing global commodities business offers trading and clearing for a variety of assets including power, natural gas and carbon emissions, cargo freight and even seafood derivatives.
“We want to meet demand where the competition is lacking and deliver more value to customers at a significantly lower cost,” said Magnus Haglind, vice president and head of U.S. commodities at Nasdaq. “Competition in the futures market is long overdue and NFX’s innovative clearing solution will allow us to pass operating efficiencies to our customers.”