In spring 2026, trading in power derivatives will be split between Euronext and EEX. While the new clearing model may bring stability to the market, it also makes it increasingly difficult—especially for smaller operators—to ensure the profitability of price hedging. We acted and started building a marketplace where trusted participants meet and trade power derivatives. Learn what PD Port is all about and how you can get involved.
Winds of Change in the Nordic Power Derivatives Market
Nasdaq’s power derivatives trading will move to a market operated by Euronext on March 14, 2026. A test phase with a limited product offering will begin on February 2. From March onwards, Nordic power derivatives will therefore be traded on two separate power derivatives exchanges: Euronext and EEX.
We are following with great interest where trading activity will ultimately concentrate and where supply and demand will meet. In the second half of 2025, EEX strengthened its position by offering incentives such as one year of trading without transaction fees. Will EEX succeed in attracting participants to its Nordic power derivatives market by investing in regional liquidity, or will Nasdaq members migrate to Euronext?
Most importantly, the reforms bring several changes that require particular attention from small and mid-sized energy market participants.
Trading volumes of Nasdaq’s Nordic power derivatives products, 2014–2025. In 2025, volumes totaled 496 terawatt-hours.
In 2025, trading volumes for EEX’s Nordic power derivatives products (approximately 0–3 TWh per month) were lower than those for Nasdaq’s Nordic power derivatives (approximately 40–60 TWh per month).
A New Membership Model and Volume Constraints Challenge Nordic Market Participants
Going forward, trading on both the Euronext and EEX power derivatives exchanges—as well as clearing through central counterparties (CCPs)—will require a GCM membership model. Under this model, a General Clearing Member (GCM), typically a bank, acts as an intermediary between the energy market participant and the exchange’s clearing function and assumes the counterparty risk.
From the perspective of Nordic energy market participants, it is also significant that Nasdaq’s Direct Clearing Client (DCC) membership model, in place for over 20 years, will be discontinued. In exchange trading, an individual direct member can represent a substantial counterparty risk to the clearing house. While the GCM model enhances stability in exchange trading through regulated, well-capitalized banks, it may also make market access more difficult for smaller energy market participants due to credit requirements or rising operational costs. In addition, GCM services are currently offered by only one Nordic provider.
To hedge profitability, the most significant change is that the minimum cleared contract size will increase to 1 MW, up from 0.1 MW previously used on Nasdaq. For example, a company consuming approximately 300 gigawatt-hours of electricity per year has an average power demand of around 35 megawatts, making a one-megawatt contract disproportionately large. As a result, it becomes more challenging to stagger hedges over time and to fine-tune hedging to match the consumption profile.
Bilateral Hedging–a Shared Reality for Market Participants
There are approximately 360 electricity retailers in the Nordic region, of which only around five are large players. In other words, the majority are smaller participants for whom hedging electricity price risk is essential for business planning and predictability. In addition, ongoing changes in the physical wholesale electricity market and reserve markets are bringing a growing number of renewable energy producers, flexible generation assets, and electricity consumers—such as data centers—into the market. These participants must be able to anticipate and manage their financial performance over time.
As noted in a 2024 study by Fingrid, the market for bilateral derivatives contracts is an oligopoly, with a small number of large players controlling a significant share of trading. Are power derivatives truly effective instruments for small and mid-sized participants, or do recent reforms steer them toward bilateral trading with only a few large counterparties? How can price transparency and reasonable transaction costs be ensured?
Bilateral derivatives trading is here to stay. Market participants no longer hedge electricity prices solely through exchange-traded products, and some rely entirely on bilateral derivatives contracts. At the European level, bilateral power derivatives trading increased from 10% at the beginning of 2022 to 30% by the end of 2023. Based on ESMA data through 2023, this growth has been robust among energy market participants, and trading volumes in 2025 suggest that this trend will continue.
How PD Port Addresses the Challenges of the Power Derivatives Market
In practice, executing bilateral power derivatives trades is often easier said than done. Finding suitable counterparties and competitively pricing transactions can be complex, risky, and time-consuming. At the same time, tightening regulationsincreases complexity and administrative burden. The key question is how to build an accessible, secure, and transparent way for all market participants to hedge electricity price risk.
We decided to build PD Port—a new kind of marketplace where trusted participants can meet and competitively price power derivatives. As a neutral market operator, we provide an independent platform that connects counterparties, enhances liquidity, and makes trading simpler, fairer, and more reliable:
- When prices, terms, and counterparties are openly visible, price formation is driven by genuine supply and demand rather than hidden margins or one-sided contract terms.
- Transparency reduces information asymmetry, builds trust, and supports counterparty risk management by allowing participants to assess counterparties and terms before committing.
- The trading process becomes more efficient: manual work is reduced, and bids and offers can reach multiple counterparties simultaneously.
- Open competition improves outcomes for smaller participants as well—particularly those for whom exchange collateral requirements and administrative costs can be a barrier.
PD Port combines the flexibility of customized power derivatives contracts with the discipline of a transparent marketplace. It supports regulatory compliance and strengthens overall market resilience by distributing risk across a broader set of participants. With market information openly available and subject to regulatory oversight, the market remains safe, fair, and transparent. A new era of responsible power derivatives trading has begun.
Learn more about PD Port: Port | Power-Deriva Oy
