The European Energy Exchange is to acquire Nasdaq’s European power trading and clearing business, subject to receipt of customary regulatory approvals. Financial details of the deal have not been disclosed.

The European Energy Exchange (EEX) is to acquire Nasdaq’s European power trading and clearing business, subject to receipt of customary regulatory approvals. Financial details of the deal have not been disclosed.

The transaction will involve the transfer of existing open positions in Nasdaq’s Nordic, French, and German power futures as well as European carbon emission allowance futures (EUAs) to EEX’s clearing house European Commodity Clearing (ECC). 
 
Nasdaq Clearing AB, along with the clearing infrastructure to support it, is not part of the sale. Nasdaq will continue to own and operate Nasdaq Clearing AB to provide comprehensive clearing services for Nasdaq Nordic’s equity derivatives, fixed income derivatives, and other financial derivatives contracts.
 
As part of the agreement, EEX will update the current Nordic power market structure, replacing Electricity Price Area Differential (EPAD) contracts with zonal futures contracts, a proven and successful market model in many other European power derivatives markets.
 
Until the receipt of regulatory approvals, Nasdaq will continue to operate its European power trading and clearing business as usual. On receipt of the required approvals, Nasdaq will inform the market about the timing for the transfer of existing open positions to EEX.