Nasdaq, Nord Pool to launch UK power market in Sept

LONDON, April 28 (Reuters) - U.S.-based Nasdaq OMX (NDAQ.O) said on Tuesday it and Nord Pool Spot will launch the UK N2EX wholesale power market and clearing services on September 28.

Nasdaq OMX Group Inc and Nordic power market operator Nord Pool were chosen last November by the British Futures & Options Association (FOA) to set up the spot and cash-settled derivatives power market with clearing services by end-2009.

"N2EX...will be able to start testing in May, as soon as the participants are connected to our trading and clearing platform," said Geir Reigstad, Head of NASDAQ OMX Commodities.

UK participants will conduct necessary market readiness activities ahead of the launch, it said. N2EX will also expand its offering by providing clearing through UK settlement banks from the third quarter.

The FOA has been trying to revive a flagging and fragmented wholesale power market in Britain by setting up a liquid wholesale spot market off which futures contracts can be priced.

Nasdaq and Nord Pool Spot already run the Nordic power market together and UK power market players hope they can create similarly effective marketplace in Britain. (Reporting by Nao Nakanishi)