The Nasdaq Commodities offering includes Futures, Deferred Settlement Futures (DS Futures), Options and Electricity Price Area Differential (EPAD) contracts.
Nasdaq Commodities Futures contracts are daily mark-to-market where profits and losses from financial Futures contracts are realized on a daily basis.
In addition to the Futures contracts, Nasdaq Commodities also offers DS Future contracts which are financially settled contracts with similar cash flow settlement structure as the non-cleared physical power contracts i.e. cash settlement during the delivery period.
Nasdaq Commodities offers Nordic power options for trading and clearing. Yearly and quarterly European style Options in addition to Monthly Asian style Options are available for trading and clearing. Option contracts in combination with other Nasdaq Derivatives are valuable tools to manage risk and hedging strategies.
EPADs are Futures and DS Futures reflecting the difference between an e.g., Area Price and a Nordic System Price. EPADs allow members to hedge against the price risk caused by constraints in the transmission grid.