Nasdaq OMX Commodities and Nord Pool Spot have been awarded a contract to launch Britain’s the first electricity exchange, the companies announced on November 26.
The exchanges were selected by the Futures and Options Association, a London-based industry organisation, which organised a competitive tender.
The two exchanges will form a UK consortium that will deliver a spot and cash-settled derivatives power market with clearing services.
The spot market will begin operating within the second quarter of 2009 with derivatives to follow, but the date of launch of the derivatives market is yet to be decided.
The decision to pick Nasdaq and Nord Pool Spot was reached by an FOA steering group, comprising power market participants...