Nasdaq OMX Acquires Clearing House for Power and Gas Business
March 8, 2010
Nasdaq OMX Group said Monday it acquired a Chicago-based credit company for clearing power and gas contracts and derivative securities traded over the counter.
The purchase of the North American Energy Credit and Clearing Corp. closed last Wednesday, March 3, the New York-based exchange operator said. Financial terms were not disclosed.
"This acquisition presents us with an opportunity to deliver what the U.S. power and gas market currently lacks: a clearinghouse with the flexibility to clear both financial and physical instruments," said Nasdaq OMX chief executive Bob Greifeld.
Nasdaq OMX already operates the Nord Pool market, a large power derivatives exchange which has been in operation for 15 years. The exchange recently launched N2EX, a marketplace for physical UK power contracts.
The Nasdaq OMX Commodities Clearing operation will be led by Geir Reigstad, head of Nasdaq OMX Commodities.
The NECC acquisition follows Nasdaq OMX's announcement last month that it was taking a majority stake in Agora-X, an electronic trading platform for the OTC derivatives marketplace. Agora-X is based in Kansas City.
NECC provides clearing services to North American energy markets. Customers include physical traders such as utilities and merchant generators, and financial traders such as banks and hedge funds.
