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Nasdaq Commodities launches German Wind Index Futures

First Published 8th December 2015

Contracts to use the Renewable Wind Index for Germany, the NAREX-WIDE, as underlying.

Bjørn Sibbern, Nasdaq Commodities

Bjørn Sibbern, Nasdaq Commodities

"The launch of our German Wind Index Futures gives wind power producers, utilities, investors and insurers attractive new trading instruments."

Nasdaq Commodities has introduced German Wind Index Futures contracts in consultation with the industry, and in response to market demand. In September, Nasdaq launched the Renewable Wind Index for Germany, the NAREX-WIDE, as preparation for the launch of the German Wind Index Futures contracts. The period between the launch of the Index and the start of trading the Index Futures was implemented to give the market the opportunity to become familiar, and trust, the Index ahead of trading.

The wind index, NAREX-WIDE, is published on www.nasdaqomx.com/commodities. It shows the daily utilization of the installed wind power capacity in Germany. NAREX-WIDE is a synthetic index which is based on ECMWF weather predictions and a wind power production model which was developed by the index calculation agent, Meteogroup Deutschland. It fulfills all requirements for an underlying index for a derivative: transparency, accuracy and reliability.

Bjørn Sibbern, Global Head of Nasdaq Commodities, said: "Germany is Europe's largest producer of wind power with a total installed capacity of more than 40.000 MW covering nearly 9% of Germany's electricity demand in 2014. The launch of our German Wind Index Futures gives wind power producers, utilities, investors and insurers attractive new trading instruments to hedge risks from wind production in the long and short-term perspective. With these wind power futures, Nasdaq opens up a new category of power production related derivatives, which will, in the future, be expanded to more complex products and extended to other countries and regions."

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