Posted By Global Banking and Finance Review
Posted on January 28, 2025
OSLO (Reuters) -Pan-European stock exchange Euronext on Tuesday announced it would acquire Nasdaq's Nordic power futures activities, as it seeks to widen its business in the northern European electricity market.
Euronext's Nord Pool power trading business is already set to launch trading in financial contracts in June this year, which will be combined with the acquired Nasdaq unit in 2026 following the migration, the companies said.
Euronext and Nasdaq did not provide financial details of the transaction, which is also subject to regulatory approval.
Under the proposed plan, trading of Nasdaq's power futures will be transferred to Euronext Amsterdam, the companies said.
Existing open positions currently held in Nasdaq Clearing will transfer to Euronext Clearing, given member approval, they added.
Earlier this month, Euronext CEO Stephane Boujnah indicated the pan-European stock exchange's interest in a deal with Nasdaq Nordic, in line with its strategy to consolidate European financial markets.
"The acquisition of Nasdaq's Nordic power futures is a major accelerator for our power futures ambition and positions Euronext as a leading player for trading and hedging of power in Europe," Camille Beudin, Euronext head of diversified services, said in a statement.
Liquidity in the Nordic financial power market has been under pressure as trading has shifted to short-term spot contracts or bilateral (OTC) deals due to growing price differences in the region.
Euronext's acquisition follows an abandoned attempt by Germany's European Energy Exchange to take over the Nasdaq Nordic power business.
(Reporting by Nora Buli in Oslo and Alban Kacher in Gdansk; Editing by Kirsten Donovan and David Evans)