Nasdaq Commodities offers trading and clearing of commodity derivatives contracts. The markets covered are Nordic, German and UK power, El-Cert, carbon allowances, natural gas, tanker and dry cargo freight and fuel oil. In addition Nasdaq Commodities offers clearing of seafood derivatives traded on third party exchange and clearing of Iron ore contracts.
Trading of commodities products takes place over "the exchange" (Nasdaq Oslo ASA) and clearing through "Nasdaq Clearing" (Nasdaq Clearing AB). The exchange is subject to regulations and legal requirements through its derivatives exchange licence issued by the Norwegian Ministry of Finance.
A well-functioning market presupposes and depends on trust. This must be held by all participants affected by the business. The Exchange's corporate governance principles accordingly address all the factors which can influence trust in the market.
The Exchange's corporate governance principles aim to ensure that:
it facilitates transparent price formation
it provides an efficient marketplace
the regulatory authorities are confident that the exchange fulfils the roles assigned by its licences
employees comply with the company’s ethical guidelines
control bodies in the organisation are adequate for ensuring that all elements of the business are subject at all times to systematic risk analysis
the participants want the exchange as their preferred marketplace
The object of the code of practice issued by the Norwegian Corporate Governance Board (NCGB) is confined to ensure that listed companies provide a clarification of the division of roles between shareholders, the board of directors and the executive management which goes beyond legal requirements.The NCGB code is intended for listed companies with numerous shareholders, so that many of its 15 main points are not relevant for the exchange, where a single owner hold the shares in the company.
With regard to building further trust in the market through its corporate governance, Nasdaq Commodities has several bodies which handle risk management and member compliance with the Rulebook.
Among legislation and statutory regulations which supplement the recommendations in the NCGB code, Chapter 3 of the Norwegian Exchange Act and regulation 1080/2008 from the Financial Supervisory Authority of Norway on clarifying control responsibility, documentation and confirmation of internal control are particularly important.