The Wall Street Journal: Nasdaq considers new energy futures initiative

Nasdaq OMX Group Inc. is weighing an attack on competitors that dominate the trading of oil and gas futures, according to people familiar with the matter.

The company is consulting with energy traders and brokers about a new project that would allow clients to buy and sell crude oil, natural gas and U.S. power futures, according to a document reviewed by The Wall Street Journal. Several large banks including J.P. Morgan Chase & Co. have already signed up to try out the initiative, according to people familiar with the matter.

The project is known inside the company as Nasdaq Energy Futures, according to the document.

The push into energy futures would pit Nasdaq NDAQ, -2.25%   against two major energy exchange operators, Intercontinental Exchange Inc. ICE, -0.72%   and CME Group Inc. CME, -2.43%  , which have dominated that business for years. Futures are contracts to buy or sell certain underlying assets at a given price on a specific expiration date. They are often used to protect against unexpected market swings or to speculate on coming price moves.

The goal is to undercut Nasdaq rivals with “competitive fees compared to current market price for trading and clearing of energy products,” the Nasdaq Energy Futures document said. Trades would be cleared by Options Clearing Corporation, the document said

An expanded version of this report appears at – Top Stories

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