Dear Trading Participants,
Since its launch in April 2017, the EEX Phelix-DE Future has rapidly established itself as the new benchmark product for trading German power. In December 2017, the Phelix-DE trading volumes exceeded the Phelix-DE/AT Futures volumes for the first time. This positive development will result in the EEX making adjustments to the settlement methodology as well as the number of tradeable maturities:
1.) Change of Settlement Methodology of Phelix Futures
We can observe a price differential (spread) between the new German power reference product Phelix-DE and the former benchmark of the German/Austrian price zone Phelix-DE/AT. This is valid for all delivery periods after the planned split of the German/Austrian price zone, with the split currently planned from 1 October 2018 onwards. Taking into account that the Phelix-DE contract now possesses the higher liquidity, as well as its new reference character, the future calculation of settlement prices for the Phelix-DE/AT contracts shall no longer be calculated independently but as a spread to the Phelix-DE contract. This switch is planned for settlement prices from 25 January 2018 onwards.
The independent trading data of Phelix-DE/AT products will no longer be decisive in calculating settlement prices. For detailed information please find our new settlement pricing procedure on our homepage under the following link: https://www.eex.com/en/trading/trading-forms-and-documentation/settlement-price.
2.) Reduction of Tradeable Maturities in Phelix-DE/AT Year Products
As a sign of confidence in the Phelix-DE product suite, the EEX Exchange Council discussed the potential phasing out of available maturities for the Phelix-DE/AT contracts during its meetings in 2017. Currently, open interest in Phelix-DE/AT Base year futures exists until the end of 2023 and 2020 for peak years. In order to further support the smooth transition from Phelix-DE/AT into the new national contracts Phelix-DE and Phelix-AT, the Exchange Council recommended not to list additional maturities for Phelix-DE/AT futures later than 2023 for trading. The Management Board of the Exchange followed that recommendation and reduced the number of tradable maturities for Phelix-DE/AT year futures (Base, Peak and Off-Peak) from 6 to 5. Any trades concluded or registered in Phelix-DE/AT futures for calender year 2024 will be cancelled ex-officio.
Please do not hesitate to contact us at +49 341 2156 222 if you have further questions.
Yours sincerely,
Market Operations
European Energy Exchange AG
Phone: +49 341 2156 222
Mail: trading@eex.com
Reuters: trading@eex.com
www.eex.com