Global financial services provider Citi has entered the Nordic power market as an exchange member on the Nord Pool exchange. Under its Citigroup Global Markets alias, the bank will trade financial power derivatives, emission allowances and emission credits.
Nord Pool said that it now has a total of 378 legal counterparts as exchange members, clearing clients and representatives. So far in 2007, Nord Pool has had a net influx of 34 new memberships on power trading, and 18 new memberships on emissions trading.
Paul Mead, managing director of commodities derivatives at Citi, commented: We are pleased to become active on the Nord Pool exchange. It is a key milestone in the ongoing build-out of our European commodities business.
Torger Lien, CEO of Nord Pool, added: We are very satisfied that Citi, one of the leading investment firms, sees opportunities in the Nordic power market. We offer a broad range of derivative products where new members can exploit the correlation between different commodity markets, diversify portfolios or establish own products or funds based on Nord Pool standard contracts.
Nord Pool is the world’s first international commodity exchange for electricity, green certificates, EU allowances and certified emission reductions. However, the exchange’s core business is trading and clearing physical delivery and financially settled power contracts in the Nordic region.
Citigroup Global Markets expects to begin trading in the financial and emissions markets in September 2007.