Nodal Clear, the clearing house for Nodal Exchange, is a Derivatives Clearing Organization (DCO) pursuant to the Commodity Exchange Act and is regulated by the U.S. Commodity Futures Trading Commission (CFTC). Nodal Clear commenced clearing Nodal Exchange contracts in October 2015.
Nodal Clear serves as central counterparty for all Nodal Exchange transactions. Through the novation process, the clearing house becomes the buyer to every seller and the seller to every buyer, significantly reducing the credit risk exposure of Nodal Exchange participants.
Nodal Clear’s strong risk management practices create a sound market infrastructure for trading of Nodal Exchange contracts. Nodal Clear employs a tailored portfolio margining methodology that appropriately margins Nodal Exchange contracts and provides capital efficiencies to market participants.