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01/2002
Nord Pool has decided to introduce the euro as its trading currency. The transition from Norwegian kroner to the euro will be a gradual process. The process will begin with a euro-denominated year contract for 2006, which is listed for trade from 2 January 2003. All new contracts with delivery periods starting on or after 1 January 2006 will be listed in euro. A second step would be to change the trading currency of all currently listed contracts from Norwegian kroner to euro; any implementation of step two and its timing will depend on market needs and expressed interest. As of 2 January 2006, all contracts listed on Nord Pool will trade and be cleared in euro.
Nord Pool is a Nordic exchange and a clearinghouse; we intend to grow and become a participant in the European market for trade in and clearing of energy products. Most EU member states have already switched to the euro. Several of the countries that did not adopt the euro as their currency as of 1 January this year are considering doing so. In time, Nord Pool expects the euro to become the dominant trading currency in the Nordic countries, as well.
A common currency is required to secure comparative advantages and benefit from Nordic liquidity and market volume. Also, it will be easier for Nord Pool to introduce new product series meeting European market needs once the euro is the trading currency. As a result, exchange members will have a broader range of risk management tools.
It is Nord Pool's view that the introduction of the euro as trading currency will strengthen the Nordic market, offer the Nordic exchange members an entry with a head start into a European power market, and secure Nord Pool's position in the Nordic countries and the rest of Europe.