LONDON, March 4 (Reuters) - British power exchange N2EX will transfer its short-term physical market clearing and operations to the Nordic exchange Nord Pool Spot by Oct. 1, operator Nasdaq OMX said on Tuesday.
N2EX, formed in January 2010, is jointly operated by Nasdaq OMX’s clearing services and Nord Pool Spot’s physical market operations.
“In pursuit of its long-term ambition to provide consolidated intraday and day-ahead trading opportunities across multiple markets, Nord Pool Spot will take over N2EX clearing responsibilities for the short-term physical market from Nasdaq OMX,” Nasdaq OMX said in a statement.
The takeover of N2EX’s physical power operations in Britain means Nord Pool Spot, which already operates Europe’s most mature power markets in Denmark, Sweden, Norway and Finland, as well as the Baltic region, effectively becomes the key physical power market exchange of northern Europe.
“The transfer will effectively replicate in the UK the successful Nordic wholesale power market model, with Nasdaq OMX operating the derivatives markets and Nord Pool Spot the short-term physical market,” Nasdaq OMX said.
In a move to develop a new trading platform designed to be harmonised with European cross-border intraday developments, Nasdaq OMX said N2EX’s current prompt and intraday markets would be suspended from April 1, pending the launch of the new intraday market.