ElectronX

From MarketsWiki
Jump to navigation Jump to search


Occ-banner.png


ElectronX
ElectronX-200px.jpg
Founded 2023
Headquarters Chicago
Key People Sam Tegel, CEO
Products Electricity Derivatives
Twitter @Trade_ElectronX
LinkedIn Profile
Website www.electronx.com
Releases Company News

ElectronX is a proposed U.S.-regulated derivatives exchange focused on offering granular electricity derivatives contracts to help manage price risk and volatility arising from the increasing adoption of intermittent renewable energy sources like wind and solar. The exchange aims to provide a modern financial infrastructure to support investment in clean energy development.[1] The exchange aims to offer a regulated and transparent trading platform for electricity derivatives.

ElectronX is applying for a futures exchange license from the Commodity Futures Trading Commission. If approved, ElectronX would be taking on the two large incumbents in the electricity futures markets, the Intercontinental Exchange (ICE) and Deutsche Börse, which offers U.S. electricity futures through the Nodal Exchange.[2]

The exchange's first futures contracts will be tied to electricity prices in Texas, but it plans to eventually list contracts tied to power prices at locations around the U.S., according to CEO Sam Tegel. Unlike its two rivals, ElectronX plans to offer contracts tied to the hourly price of electricity.

History[edit]

Products and Services[edit]

Overview[edit]

As more renewable energy is integrated into the power grid, the intermittent nature of wind and solar generation coupled with growing electricity demand has resulted in volatile intraday pricing, especially during adverse weather events in high-population areas. ElectronX plans to offer fully collateralized and centrally cleared electricity derivatives contracts that allow power market participants of various sizes to hedge this short-term price risk.

The exchange's target customers include energy generators, storage companies, large consumers, and households with renewable assets that can benefit from monetizing their investments. ElectronX believes its products will help smooth the financial path for the transition to renewables.

Leadership and Funding[edit]

Funding[edit]

In June 2024, ElectronX announced a $15 million seed funding round led by the venture capital firm Innovation Endeavors, with participation from DCVC, Amplo, BoxGroup, and Lightning Capital, as well as individuals in the trading and power industries. The funding will support ElectronX's pursuit of regulatory approvals to operate as a designated contract market and clearing organization under the oversight of the U.S. Commodity Futures Trading Commission (CFTC).

Leadership[edit]

ElectronX was founded by Sam Tegel, who serves as the company's CEO. ElectronX has assembled a team of experienced advisors and regulatory board members from firms like FINRA, CME Group, Nodal Exchange, and formerly of the Federal Energy Regulatory Commission (FERC) to oversee its marketplace.

ElectronX’s Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) board members include:

ElectronX corporate advisors include:

ElectronX corporate board members include Evan Caron, Philip Krim, David Silbert, Sam Smith-Eppsteiner and Sam Tegel.

References[edit]