Article ID: 94dd6f24a953439e9e58428743dd044a138f31a9e12174a27e273c80e3400f1a
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This article was paid for by a contributing third party.More Information. Interview: Nodal Exchange’s Paul Cusenza Paul Cusenza, chief executive of Nodal Exchange, discusses the current fundamentals driving electricity prices, the growing confidence in state-driven environmental programmes and why Nodal has a 95% share of the US zonal power markets Cusenza says it is “a fascinating time” to be in US power markets as they transition towards much greater use of renewables while facing surging demand from data centres and industrial growth. On top of that, extreme weather events and geopolitical upheavals are creating volatility. From its launch in 2009, Nodal was designed to address the granular nature of the US power market by allowing traders to hedge the zones and nodes with as little basis risk as possible. To do this, the exchange took an innovative approach to risk management using portfolio margining and expected shortfall to address the idiosyncrasies of electricity price curves, he says. Nodal Exchange has extended this granular approach to the environmental markets where it now lists over 120 contracts, more than any other exchange. Key discussion points: 0.50 – What are the key issues US power traders are keeping an eye on right now? Sponsored content Copyright Infopro Digital Limited. All rights reserved. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy. If you would like to purchase additional rights please email info@risk.net Copyright Infopro Digital Limited. All rights reserved. You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5. If you would like to purchase additional rights please email info@risk.net
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