OSLO, Aug 27 (Reuters) - Oslo-based power exchange Nord

Pool, together with parent company Euronext, will

launch a dedicated Nordic and Baltic power derivatives market,

aiming to boost liquidity in the segment, the firms said on

Tuesday.

Euronext Nord Pool Power Futures will offer trading of

cash-settled futures for all maturities on the cross-Nordic

system price and electricity price area differential contract

(EPADs) across the Nordics and Baltics, the companies said.

The underlying spot indices will be provided by Nord Pool,

and clearing will be handled by Euronext, they added.

Customer testing will open as soon as March 2025.

"Nord Pool and Euronext will work to bring back liquidity to

Nordic power derivatives, with a proven set up which will

attract OTC traded volumes into the market," Tom Darell, CEO of

Nord Pool, 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.

Nord Pool has been offering physical day-ahead and intraday

trading to date but decided to take the step to offer financial

trading after extensive consultation with market players, Darell

added.

"Their message has been clear: end uncertainty in the power

derivatives territory by delivering a liquid power futures

market, run by a business with commitment and a vision for the

future," he added.

Still, Nord Pool's entry into the business segment will see

three different operators vying for the Nordic power derivatives

market.

A deal between Nasdaq and the European Energy

Exchange (EEX) - which would have seen EEX purchase

Nasdaq's Nordic power trading and clearing business - fell

through earlier this year.

Nasdaq is currently the biggest exchange for Nordic

financial trading.