Nasdaq's NFX Launches With Suite of New Tradable Products

Nasdaq has reported that its US-based Nasdaq Futures (NFX) has officially launched as of today, according to a Nasdaq statement.

NFX has been in the headlines recently after it approved a total of sixteen new Futures Commission Merchants (FCMs) last week. Moreover, NFX assimilated Stellar Trading System’s trading utility back in June ahead of its launch.

The newly launched platform will initially be offering a cascade of new products, including futures and options on oil, natural gas, and US power benchmarks. As per the new launch, the NFX will implement a fee holiday for the first nine months of trading with the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term – all tradable products under the NFX will also be cleared through the Options Clearing Corporation (OCC).

The NFX is a contract market powered by Genium INET technology – the market will feature a fully transparent central limit order book, real-time trade reporting functionality, and pre-trade Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term capabilities.

Moreover, the NFX’s new energy product suite will serve as an enhancement of Nasdaq’s current commodities business, which utilizes trading and clearing solutions for such assets as power, natural gas, carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates, and clearing services.

According to Hans-Ole Jochumsen, President, Nasdaq, in a recent statement on the launch, "NFX was born out of strong customer demand and a confidence in Nasdaq's ability to deliver an innovative technology solution. We truly believe that competition drives innovation, and that the energy futures market is ready for our more transparent pricing model."

"We want to meet demand where the competition is lacking and deliver more value to customers at a significantly lower cost. Competition in the futures market is long overdue, and NFX's innovative clearing solution will allow us to pass operating efficiencies to our customers," added Magnus Haglind, Vice President and Head of U.S. Commodities, Nasdaq, in an accompanying statement.