Deutsche Börse taps the US commodity market

The commodity arm of Deutsche Börse Group, European Energy Exchange (EEX), has reached an agreement in principle with the shareholders of Nodal Exchange Holdings, LLC – a US regulated futures exchange, headquartered in Virginia – on the purchase of all shares. Therewith Nodal Exchange will become part of Deutsche Börse Group.

The acquisition gives Deutsche Börse access to the North American energy market, enabling the company to expand its global presence and membership base in line with its growth strategy “Accelerate”. Nodal Exchange offers a variety of electricity and natural gas contracts to hedge against price risks in the United States. “Our clear vision is to turn Deutsche Börse into the global market infrastructure provider of choice, top-ranked in all its activities”, said CEO Carsten Kengeter. “With Nodal as part of our group, we will be able to provide an even broader trading and clearing portfolio, enhancing our global footprint and membership base; ultimately supporting our customers' needs for trading across a variety of markets and geographic zones.”

With currently over 1,000 contracts on hundreds of unique locations, Nodal Exchange provides the most effective basis risk management available to market participants. In addition, the company offers a Henry Hub natural gas contract providing cross-margining benefits with participant’s power portfolios. As part of the company, Nodal Clear, a derivatives clearing organization pursuant to the Commodity Exchange Act and regulated by the US Commodities Futures Trading Commission (CFTC), provides clearing services to the local market participants.

The total purchase price for all shares is in the low three digit million US-Dollar range. The transaction will be immediately accretive to the net income of Deutsche Börse Group. Execution of binding agreements shall take place shortly; closing of the acquisition is still subject to customary conditions such as required regulatory approvals.