Non-MTF Products

The MiFID II legislation outlines a specific framework for power contracts that can be physically settled and are not traded on an exchange. Within this framework, EEX offers the opportunity for a specific multilateral platform to trade non-MTF power derivatives products.

Background

The revision of the Markets in Financial Instruments Directive (MiFID II) will fundamentally change the framework conditions for trading power and natural gas derivatives contracts. As a result, many commodity firms who trade energy derivatives through an exchange may have to adhere to additional requirements, since these products are classed as financial instruments.

Therefore, EEX will launch additional trading venues for power derivatives in line with the new legislation. These new trading venues which are scheduled to start as of 1^st July 2016 will be in addition to the existing exchange market. All contracts will be cleared by European Commodity Clearing (ECC), thereby ensuring that trading is secure and anonymous. Once MiFID II comes into effect, EEX will apply for an OTF licence for this market segment.

Advantages of Trading Non-MTF Products at EEX

• Transactions are not considered as financial instruments under MiFID II
• High standards of transparency and supervision
• Additional trading venues widen the scope of services

Non-MTF Products at a glance