Power Derivatives Newsletter | December 2019
In our latest video, Steffen Koehler, Chief Operating Officer at EEX, gives an update on 2019 performance in power, outlines the roadmap for EEX’s Global Power offering and highlights the emerging energy markets in Asia as the key power story for the 2020 decade.
> watch the video
News: EEX Group acquires commodities business of Nasdaq Futures, Inc. (NFX)
EEX Group and U.S. based Nasdaq Futures, Inc. (NFX) have successfully reached an agreement to sell NFX’s futures and options exchange business to EEX Group. EEX Group will acquire the core assets of NFX, including the portfolio of open interest in NFX contracts. The transaction involves the transfer of existing open positions in U.S. Power, U.S. Natural Gas, Crude Oil, Ferrous Metals and Dry Bulk Freight futures and options contracts to EEX Group's clearing houses Nodal Clear and European Commodity Clearing (ECC).
> read the full press release
Market Insights: Leading the Way for Merchant Renewables Hedging in Europe
Spain is Europe’s fastest growing subsidy-free market. The decreasing levelised cost of energy (LCOE) and favourable market conditions have led to accelerated development of new renewable energy projects, particularly for solar power. Companies who specialise in developing and investing in greenfield renewable energy projects are seeking financing through securing long-term PPAs (Power Purchase Agreements) which provide a baseline revenue floor.
In her article, #eexpert Viviana Ciancibello outlines the current PPA market development with a particular view on Spain, and outlines the solutions of EEX for exchange-based PPA hedging.
> read the full article
In Focus: Greece
EEX has offered power trading for the Greek Market since 2014 – a market that is of strategic importance with power interconnections with five neighboring countries. As of today, EEX is the only cleared venue offering standardised power derivative products for the Greek market.
Our #eexpert Alexandros Papageorgiou provides background information on the development of the Greek power market and relevant political and structural characteristics.
> read the full article
New: Trade registration process for 2020
In order to ensure regulatory compliance with pre-trade transparency requirements for pre-arranged transactions (also commonly known as ‘block trades’ or ‘OTC-cleared transactions’), EEX will adapt its trade registration procedures as of 1st January 2020.
The EEX solution was developed with a focus on minimising the impact on the existing trade registration process on the member side, while at the same time meeting the regulatory requirements to provide transparency for pre-arranged transactions that can be acted upon by third parties before a trade is executed.
> get further information
Austria – EEX supporting the further development of liquidity
Launched by EEX in June 2017 against the background of the German/Austrian bidding zone split, the Austrian power derivatives portfolio has just recently passed its second anniversary.
Today, more than 50 trading participants from all over Europe are active in this market at EEX. All together, they contributed to a total cleared volume of more than 11.0 TWh so far this year.
To further support this positive development, EEX launched additional short-term power futures (Days, Weekends, Weeks) for the Austrian market on 2nd December. This provides trading participants with new hedging instruments, which can be used especially for the background of higher price differences that typically occur in the winter months compared to other markets (e.g. Germany).