Leipzig, 21 June 2016. On 15 June, the Exchange Council of the European Energy Exchange (EEX) held their second meeting of 2016 in Leipzig. In addition to changes in the staffing of the council, the meeting focused on new products for the Emission Allowance Market as well as changes to the rules and regulations in the context of the Market Abuse Regulation (MAR).
The Exchange Council elected Dr. Michael Redanz, Managing Director of EWE Trading GmbH, as its new chairman. He succeeds Peter Heydecker, who resigned from the Exchange Council after the last meeting. Werner Fleischer, a member of the Management Board of Verbund Trading GmbH, and Kerstin Ludwig, Relationship Manager Prime Solutions & Financing, BNP Paribas, have also been elected as new members of the Exchange Council. Furthermore, Jens Göbel, Head of Power & Emissions Trading, eni Trading & Shipping S.p.A., was elected as an additional deputy chairman. The new chairman Michael Redanz thanked the members who have left the council, Peter Heydecker and Christoph Bilshausen, for their constructive cooperation.
Additionally, the Exchange Council approved the introduction of options on derivatives contracts of EU Emission Allowances (EUA). The trade volume on the Secondary EUA Market of EEX (i.e. trading of emission allowances which are already on the market) has grown consistently over the last months. In this context, many trading participants have asked for derivatives market options for this market. The Exchange Council supported the introduction of the options contracts whose underlying is the EUA Future with maturity in December. The EUA options are offered for the current and the next eight December maturities of the EUA futures and will be offered for trading starting in autumn of this year.
European Energy Exchange AG Page 4 The Exchange Council also approved the expansion of the maturities of the EEX EUA Future beyond the third trading phase of the Emissions Trading System (ETS). With the expansion of this offer, EEX complies with the wishes of the market participants that today wish to hedge their CO2 price risk beyond the year 2020. As a result, EEX will offer the current and the next eight December maturities for trading in EUA futures. These new maturities will also be available from autumn.
Furthermore, the Exchange Council discussed the Market Abuse Regulation (MAR), which will take effect on 3 July. In the framework of this European regulation, the provisions on market price manipulations and insider trading within the context of trading in financial instruments have been tightened. In compliance with these new requirements, EEX has adjusted its code of conduct and updated the provisions regarding the ban on insider trading and market manipulation. The Code of Conduct comprises provisions regarding the conduct of the exchange, its trading
participants and exchange traders. The Exchange Council expressly welcomes the expansion of the code of conduct in the interest of fair and transparent trading. The Exchange Council of EEX is an official body of the exchange under the German Exchange Act. It consists of a total of 24 members who expertly represent the various relevant interest groups and business circles. In addition to the trading participants who are represented by 19 elected members from five different voting groups, four representatives from associations and one representative of energy science belong to the Exchange Council. The tasks of the Exchange Council include the formulation of the rules and regulations of the exchange and their amendments. The Exchange Council is also tasked with the supervision of the Management Board of the Exchange and the appointment of the Head of the Market Surveillance.
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