Making Sense of ‘Fit for 55’

    Emissions which are in scope for the ETS are all emissions on intra-EU voyages, all emissions occurring while the vessel is berthed in an EU port, 50% of emissions during the vessels incoming voyage to the EU from a 3rd country port and 50% of emissions during the vessels outgoing voyage from an EU port to its next 3rd country port.

    Carbon emissions for a vessel are reported through the MRV regime for all the emissions of that vessel which are in scope for a single year. Allowances then need to be surrendered to cover the emissions of that vessel by April of the year following the year for which the emissions were reported. For example, if the in-scope emissions of a vessel are 50,000 mt in 2023, the owner of that vessel would need to surrender allowances for 10,000 mt CO2 (20% of emissions are covered in 2023) by April 2024.

    Yes, ECC offers margin credits between EUA and freight futures. Margin requirements and credits are recalculated daily, and the latest rates are available on the ECC website.

    Strategies are driven by the financial turning point where costs of allowances exceed the cost of other financial obligations.

    On the use of ports near the EU, a port call is quite strictly defined in the proposed policy and would mean physically unloading cargo and re-loading it back on the vessel. The EU has studied port call evasion and estimate that at a carbon price of EUR 100, up to 20% of voyages could have incentives to avoid. The EU explicitly leaves the door open to revise its definitions if evasion strategies become prevalent.

    Regarding outright transhipment, the EU commissioned a study to look at a case study involving a port in Spain and one in Morocco. The key economic inflection point is the length of the initial journey, meaning that intercontinental voyages would have higher incentives to evade accounting of the original carbon emissions. The potential of splitting cargos into sizes below the MRV threshold is largely seen as unfeasible for most bulk and energy commodities.

     

    This is what the EU calls fleet optimization. The EU does not consider this a large risk, as it is does not really constitute evasion. There are also expectations that this type of ‘carbon arbitrage’ would be short lived given the progressive global standards for ship designs, and the potential for emissions schemes in other jurisdictions.

    Generally, the EU ETS is a purely volume-based system with free price formation. However, within the system there is the possibility of an increase in the supply of allowances in the event of extreme price fluctuations under Article 29a of the EU ETS Directive.

    If, for more than six consecutive months, the allowance price is more than three times the average price of allowances during the two preceding years on the European carbon market, the European Commission shall convene a  meeting and be able to adopt measures such as bringing forward a part of the quantity to be auctioned or allow member states to auction up to 25% of the remaining allowances in the new entrants reserve.

    Yes, this is perfectly possible. Allowances can be surrendered at any time within the same market phase. It is free to hold allowances, there are no negative interest rates to pay as there are with cash deposits and they can be used as collateral at ECC against short EUA futures positions.

    All ships above 5,000 gross tonnes that carry cargo or people will be in scope for the EU ETS. Exceptions include military and fishing vessels, as well as ships that do not have mechanical propulsion.

    Offsets are carbon credits purchased and traded in the voluntary market and are mainly used to offset emissions from general operations, as an example, a company may purchase carbon offsets to cover the emissions that result from the travel of their staff. Emission Allowances (EUAs) are purchased and traded in the compliance market and are mandatory for the scope covered. The two are not interchangeable and voluntary carbon offsets cannot be used to fulfil a company’s obligations in the compliance market. Companies could use EUAs to cover emissions beyond their compliance obligations but in practice this is very unlikely given the large price differential between the two contract types.

    It is possible that there could be changes to the proposal during the coming negotiation rounds or that implementation is delayed, however the inclusion of maritime into the ETS does seem to be one of the less contentious points in the proposal. The European Parliament for example has already voiced concrete support for including maritime emissions within the EU ETS. Add that to the overall ambition of the proposal and the target timelines and we think it is likely that, for maritime at least, the proposal could be implemented.

    Allocation of the additional carbon price will depend on the contracting terms in the physical shipping market. If a ship owner offers a voyage rate for a particular cargo, they will likely quote a ‘carbon-included’ price, similar to how bunker fuel is priced into the $/ton voyage charter rate. If a vessel is hired on a time-charter basis, the charterer is principally responsible for all operational costs of the vessel. Since the emissions report is finalised after the voyage is concluded, there may need to be provisions for either deposits or other payment agreements to be settled in favour of the ship owner, after the vessel has discharged its cargo. Alternatively, a charterer could arrange for their own emissions allowances, to be transferred to the ship owner after the voyage has been concluded.

    In general, it is expected that costs of carbon allowances will be passed through to the delivered commodity price. However, the EU’s analysis shows overall low-price impacts on industrial commodities, and only a minor negative change in demand due to carbon costs.

    Yes. Allowances can be purchased in the primary market now and then surrendered in later years. It is also possible to trade futures contracts now for expiries out to December 2029.

    Under the proposal, there will not be specific ‘shipping’ allowances in the way that there has been for aviation in the past. Maritime will be included within the main ETS meaning that current allowances will also be applicable for surrender against shipping emissions.

    Yes, this is correct. Once 100% of emissions are within the proposed scheme, for which the current target date is 2026, it will be required that allowances are purchased and surrendered for every single ton of carbon reported via the MRV and within scope of the ETS.


    nEHS (national emissions trading system)

    What does nEHS mean?

    The abbreviation stands for national Emissions Trading System (in German “nationales Emissionshandelssystem”).

     

    What does an emissions certificate mean under the nEHS?

    An nEHS certificate entitles the holder to emit one tonne of greenhouse gases in tonnes of carbon dioxide equivalent over a specified period of time.

     

    What are the emission certificates called at EEX?

    The emission certificates in the nEHS are referred to as nEHS certificates

     

    In what languages is the information about the nEHS Sell-off available?

    The information will be available in both German and English.

     

    Will the nEHS-certificates be sold on the EEX regulated market platform?

    During the fixed price period, the sell-off will take place via a separate platform outside the regulated market of EEX.

     

    Who is obligated to buy under the nEHS?

    According to the Fuel Emissions Trading Act (BEHG), so-called "distributors" or "responsible parties" within the meaning of the BEHG are obligated to participate if they place fuels on the market. These are in particular companies that distribute or supply fossil fuels. Further information can be found under this link.

    Consumers of fuels are not obliged to participate.

    When can I apply for a registry account in the national emissions trading registry (nEHS registry)?

    An application to open a compliance account, an account type that responsible parties must open in accordance with the BEHG, is possible via the national emissions trading registry since the beginning of May 2021. As of the third quarter, it will also be possible to open trading accounts in the nEHS registry. Trading accounts can also be opened by those who are not responsible persons under BEHG. Participation in the sell-off is possible with both account types.

     

    When can I get admission to the nEHS product at EEX?

    The admission for the nEHS product at EEX isexpected to be possible from July 2021 at the earliest and September 2021 at the latest.

     

    When will the sell-off start?

    The sell-off is expected to start in October 2021.

     

    When will be the last sell-off date in 2021?

    The last date for sell-off is not fixed yet. The last date of sell-off in December will be published as part of the August 2021 sales calendar.

    What are the admission requirements?

    EEX will inform about the admission requirements and the process as soon as approval has been granted by the competent authority. A trader license analogous to EUA trading or other trading at EEX will not be required for participation in the sell-off during the fixed price phase. However, prior application and opening of an account in the nEHS registry operated by the German Emissions Trading Authority (DEHSt) is required for admission.

     

    How and when can I open a registry account in the national emissions trading registry (nEHS registry)?

    Since the certificates exist only in electronic form, they are transferred exclusively in an electronic database, the national emissions trading registry (nEHS registry). Admission to an account opening (for compliance accounts) in the registry operated by the German Emissions Trading Authority (DEHSt) is possible since May 2021.

     

    What options do I have to participate in the sell-off process in the nEHS?

    The access is possible under the existing types of EEX/ECC memberships. An additional special type of EEX/ECC membership will be introduced for easy access which provides the entitlement to participate exclusively in the nEHS sell-offs. Furthermore, the sell-off process can also be accessed indirectly via intermediaries. 

     

    What is an intermediary? What are the benefits?

    An intermediary is a company that has admission with EEX/ECC and offers their services to a company not registered with EEX/ECC. The intermediary usually charges a fee but saves the company using the intermediary the time and process costs of getting admission at EEX/ECC and taking part in the sell-off. The intermediary then purchases nEHS certificates on behalf of the company using their services.

    A list of intermediaries will be provided as soon as possible on this website.

     

    I am already an EEX member and admitted to the EUA spot market. Am I automatically eligible to buy during the Sell-off?

    You will need to set up an account in the nEHS registry of the DEHSt and add the nEHS product to your product suite. Instructions will follow shortly. There are no additional requirements.

    How can I access the sell-off platform?

    The sell-off can be accessed via a web-based platform which is currently being developed. The log-in details will be provided once you are admitted to EEX/ECC. Alternatively, you can use the services of an intermediary (see question "What is an intermediary? What are the benefits?" under ‘Admission’).

    How often will sell-offs take place?

    Sell-off events will be scheduled twice every week throughout the year, with a time window of 6 hours. The exact dates will be published in the sell-off calendar six week ahead of the sell-off start date.

    Are there plans to expand the frequency of the sell-offs to more than twice a week?

    At present, we assume that two sell-offs per week will be sufficient. There are currently no plans to expand the number of sell-offs per week.

    What quantity of certificates will be available in the sell-offs?

    The quantity per sell-off is not limited.

     

    What limits will apply in the sell-off?

    1. Cash limit:
      1. For Non-Clearing Members and Clearing Members there are no mandatory limits but there limits are possible in accordance with the settings in the ECC Member Area.
      2. For Direct Clearing Participants, a mandatory limit shall apply in accordance with the collateral provided.
      3. No limit applies to the new special form of EEX/ECC membership for nEHS-only access. However, the delivery of the nEHS certificates will as well only take place after the payment has been made.
         
    2. The post-purchase-limit

    The following applies to all participants from 2022 onwards: Only a quantity of 10% of the certificates with the vintage of the previous year held in an associated compliance account on 31.12. in the previous year can be purchased in the current year (in 2022 this would be the vintage of 2021).
    Example: A participant has 1,000 certificates with a vintage of 2021 in his compliance account on 31st December 2021. Now he or an intermediary acting on his behalf may buy up to 10% of this quantity, i.e. 100 certificates, with a vintage of 2021 in 2022.

     

    I would like to participate in the sell-off without becoming an EEX member. How can I do that?

    You can conclude a contract with an intermediary. A list of intermediaries will be provided as soon as possible on this website.

     

    What vintages will be available?

    Two vintages will be available per calendar year. The vintage of the current year can be acquired to an unlimited extent and, from 2022 onwards, also the vintage of the previous year can be purchased. However, subsequent purchases are limited to 10% of the previous year's quantity and are only possible with delivery no later than on 30th September of the respective year (see question "What limits will apply in the sell-off?" 2.The post-purchase-limit ).

     

    Is it permissible for a company A (which is not itself subject to a surrender obligation) to procure allowances on behalf of a company B of the same group (which is subject to a levy obligation) and to make them available by transferring them via the respective accounts?

    This is possible. Corresponding prerequisites for acquiring emission certificates for third parties were explicitly created within the framework of Article 5 of the Fuel Emissions Trading Regulation(BEHV).

     

    How does the post-purchase rule work in detail?

    Pursuant to Article 6 (2) BEHV, the balance of emission certificates shown on the compliance account of a responsible party at the end of the calendar year is decisive for the application of the so-called "post-purchase rule", which allows the limited (post-)purchase of emission certificates at the price of the previous year between January and September of the following year. A corresponding deposit of the balances of all compliance accounts with the sell-off platform is implemented so that compliance with the limitation is ensured for the post-purchase dates. The balances of trading accounts are not relevant for the assessment basis of the post-purchase rule.

    Account

    Balance of the compliance account on 31.12. - Assessment basis (emission allowances)

    Entitlement according to post-purchase rule (emission certificates) - 10% until 30.09.

    Example 1

     

     

    Compliance-Account A1

    10,000

    1,000

    Compliance-Account A2

    10,000

    1,000

    Compliance-Account A3

    10,000

    1,000

     

     

     

    Example 2

     

     

    Compliance-Account A1

    30,000

    3,000

    Compliance-Account A2

    0

    0

    Compliance-Account A3

    0

    0

     

    While in example 1 the entitlement resulting from the post-purchase rule is distributed to three compliance accounts, example 2 shows a bundling of the emission certificates (and thus the assessment basis) in a single compliance account.

    In principle, responsible parties have the possibility to plan the balances of the compliance account individually. Thus, it is conceivable that a company to which several individual responsible parties belong, bundles the quantities acquired in the regular sale of a calendar year on one compliance account instead of holding individual balances on the individual compliance accounts of the respective shareholders. The application of the post-purchase rule is stringently applied to the balance of each compliance account at the end of the year and thus determines the respective permitted post-purchase quantity for the respective compliance account in the following year. Here, there is room for maneuver for the companies to "bundle" the emission certificates on a single compliance account at the end of the year (as the assessment basis for the additional purchase rule). Third parties (e.g. intermediaries or trading departments of companies) can also participate in the post-purchase for responsible parties; in this case, the data of the responsible party for whom the purchase of emission certificates is made as well as his compliance account must be indicated. The purchase of emission certificates on the sales platform by responsible persons or third parties can in principle take place via a compliance or trading account.

    For the surrender of emission certificates as of 30th September it must be ensured that the quantity of emission required for compliance is surrendered from the individual compliance account of a responsible person. I.e., if emission certificates were purchased by third parties, a timely transfer to the compliance account of the responsible party must be ensured before the surrender deadline.

    Secondary trading can be established independently of the sell-off on the sell-off platform. In this context, transactions are possible between compliance and trading accounts as well as between trading accounts and compliance accounts. In principle, participants are free to purchase emission certificates in the establishing secondary market - also independently of the post-purchase rule.

     

    Does the so-called 10% post-purchase rule only apply to purchases on the primary market?

    Yes, there is only a limitation of sales in the primary market in the following year on nEHS certificates with the vintage of the previous year. In the current year the quantity of nEHS certificates with the vintage of the current year per sell-off is not limited.

    Is the quantity of nEHS certificates held on a compliance account limited through the so-called 10% post-purchase rule?

    No, the balance of the compliance account on 30.09. is not limited to the balance on 31.12. of the previous year +10%. Certificate inflows and outflows can take place on the compliance account, e.g. in bilateral trading, via intermediaries and/or internal company transactions.

    When is delivery and payment scheduled?

    This topic is currently under discussion. The anticipated procedure is as follows:

    • For Non-Clearing Member, Clearing Member and Direct Clearing Participants: delivery and payment on T+1 after the sell-off
    • For the new special type of EEX/ECC membership for nEHS-only access: payment until T+3 after the current sell-off, delivery on T+4 (prerequisite: receipt of payment)

     

    Does the purchase of nEHS-certificates via EEX increase the margin for non-clearing members or clearing members?

    As with all other certificates, nEHS certificates are not included in the Initial Margin Spot Market (IMSM) calculation and therefore do not lead to higher margin requirements.

     

    Will there be cross margining between EUAs and nEHS certificates?

    As with all other certificates, the nEHS certificates are not included in the Initial Margin Spot Market (IMSM) calculation. Therefore, no cross-margining is necessary.

     

    I’m already active in the EEX EU ETS spot market. Can I use the same account with ECC as for EUA?

    No, each participant in the sell-off informs ECC about a registry account in the nEHS registry. The delivery is made to this account.

     

    Will the registry used be the same as for the EU ETS?

    No, there will be a separate registry, the so-called national emissions trading registry (nEHS registry) (operated by the German Emissions Trading Authority - DEHSt). Further information can be found here: link

     

    Can the financial settlement be processed through the same clearing bank set-up as the EUA trading?

    Yes, this will be possible.

     

    When is the surrendering deadline?

    The surrendering deadline for certificates for previous year’s emissions is the 30th September.

     

    Is banking of nEHS certificates allowed (e.g. using certificates with vintage 2021 for the fulfilment of the surrender obligation for the year 2022)?

    No. You cannot use certificates with a vintage lower than the current compliance year for the fulfilment of your surrender obligation.

     

    Is the “borrowing” of nEHS certificates allowed (e.g. using certificates with vintage 2022 for the fulfilment of the surrender obligation for the year 2021)?

    Yes, this is possible. It is possible to use nEHS certificates of the current year for the fulfilment of the surrender obligation of the previous year. However, it should be kept in mind that the prices of certificates in the sell-offs rise every year (2021: 25€, 2022: 30€, 2023: 35€, 2024: 45€, 2025: 55€).

    If there are unlimited certificates available, why could there be a need for bilateral trading?

    Due to the post-purchase limit applicable to all participants from 2022 onwards, only 10% of the certificates with a vintage of the previous year (in 2022 this would be the vintage of 2021) held in an associated compliance account on 31st December of the previous year can be purchased in the current year at the price of the previous year.

     

    When will EEX offer a secondary market for nEHS certificates?

    EEX is planning to obtain a broad range of opinions from market participants in this respect. In this context, possible customer interests and preferences for the exact type of design are to be queried. EEX is very interested in feedback from the market participants. Therefore, it will be possible to provide feedback in various ways. EEX will publish further information on this subject.

    When will the auctions start?

    Start of auctions is currently planned in the BEHG for 2026.

     

    Is it possible that auctions start earlier than in 2026?

    There is no information available to EEX so far.

    The BEHG (Brennstoffemissionshandelsgesetz) is the legal basis for the introduction of a German national carbon price for fuel emissions as far as they are not covered by the EU ETS.

     

    What are the underlying rules and regulations?

    The introduction of the nEHS is based on the political decision from 2019 for a German Climate Protection Programme 2030 and the creation of a national emissions trading system for fuels. This fundamental decision was implemented with the Fuel Emissions Trading Act (BEHG) and various implementing provisionsfor the introduction of the nEHS. Further information: link

     

    Are the new nEHS certificates qualified as financial instruments?

    The nEHS certificates are not qualified as financial instruments within the meaning of the German Securities Trading Act or the German Banking Act.

    Do the purchase transactions with nEHS certificates have to be reported under EMIR?

    The trades do not have to be reported under EMIR (regulation (EU) 2019/834).


    Market Data Vendors

    Yes, the external usage does not only include the onward dissemination of raw data, but also of derived data, understood as any product or service (including consultancy), that includes, or is based on EEX Group DataSource products.

    Yes, a license is needed if your standard prices (e.g. published in an official price list on your website) are built upon EEX Group DataSource.

    A license is not needed in case of a bilateral contract with your client, i.e. contracts containing fees that are not made public.

    No, the onward dissemination of EEX Group DataSource Products to Affiliated Companies requires the conclusion of a DataSource Service Agreement for External Usage.
    Affiliated Companies are considered as Subscribers.

    In case you need the EEX to validate the data you use for your energy pricing, there is a possibility to create a dedicated page on the EEX Website with EEX Market Data.

    A Subscriber is an entity or an individual that enters into a contractual relationship with a Vendor.

    Yes, under certain conditions discounted prices for universities and start-up companies are available.

    • Universities (=Scientific Establishments) may receive and disseminate EEX Market and Transparency data in the framework of their educational missions.

    Yes, as long as the project remains educational and does not include consultancy.

    It is possible to receive a license from EEX for data acquired by an independent 3rd party vendor, as long as this 3rd party Vendor has an agreement in place with EEX.
    Please note that the identity of the data vendor must be disclosed to EEX in any case.

    Yes, but only for the purpose of its service to the Contracting Party. Any onward dissemination by the Service Provider in any other name than the one of the Contracting Party is strictly forbidden.

    EEX will send a form every August to this end.

    Yes, if the consultancy takes place within a commercial activity, an Agreement must be signed.


    Connectivity

    As soon as the invoice is paid and payment received, access to the Info-Product ordered is cleared automatically. You will receive an e-mail confirming this.


    FAQ-Categories

    In general, we provide EEX Market data free of charge for students who are completing a Bachelor- or Master program at a university or another scientific institution.

    Students who are currently completing a Ph.D. can also receive the data free of charge if their project is for purely scientific purposes and financed from their own funds. If a third party, e.g. a company, finances the thesis, the data will be charged.
    Students who are working on their bachelor's or master's thesis in cooperation with a company must also apply for a paid access.

    Market data of the European Energy Exchange AG include all commodities tradable at the EEX for different markets and products. EEX Market Data can be provided to students for scientific purposes only. For this purpose, data of the "sFTP- End of the Day" products will be provided. Access for real-time products, Desktop-Applications and transparency data products are not provided for free to students.

    Further information regarding our EEX Group DataSource services can be found here: https://www.eex.com/en/market-data/eex-group-datasource


    Market Data Vendors

    Yes, the external usage does not only include the onward dissemination of raw data, but also of derived data, understood as any product or service (including consultancy), that includes, or is based on EEX Group DataSource products.

    Yes, a license is needed if your standard prices (e.g. published in an official price list on your website) are built upon EEX Group DataSource.

    A license is not needed in case of a bilateral contract with your client, i.e. contracts containing fees that are not made public.

    No, the onward dissemination of EEX Group DataSource Products to Affiliated Companies requires the conclusion of a DataSource Service Agreement for External Usage.
    Affiliated Companies are considered as Subscribers.

    In case you need the EEX to validate the data you use for your energy pricing, there is a possibility to create a dedicated page on the EEX Website with EEX Market Data.

    A Subscriber is an entity or an individual that enters into a contractual relationship with a Vendor.

    Yes, under certain conditions discounted prices for universities and start-up companies are available.

    • Universities (=Scientific Establishments) may receive and disseminate EEX Market and Transparency data in the framework of their educational missions.

    Yes, as long as the project remains educational and does not include consultancy.

    It is possible to receive a license from EEX for data acquired by an independent 3rd party vendor, as long as this 3rd party Vendor has an agreement in place with EEX.
    Please note that the identity of the data vendor must be disclosed to EEX in any case.

    Yes, but only for the purpose of its service to the Contracting Party. Any onward dissemination by the Service Provider in any other name than the one of the Contracting Party is strictly forbidden.

    EEX will send a form every August to this end.

    Yes, if the consultancy takes place within a commercial activity, an Agreement must be signed.


    Emissions Auctions

    Auctioning is the basic principle of allocating allowances within the EU Emissions Trading System (EU ETS). This means that businesses have to buy an increasing proportion of allowances through auctions by way of a regular series of auctions in accordance with Commission Regulation (EU) No.1031/2010 (“EU Auctioning Regulation”).

    EEX is the leading auction platform. About 90 percent of all allowances auctioned in the EU ETS are allocated via EEX.

    At the moment EEX conducts weekly auctions for EUAs on Monday, Tuesday, Thursday and Friday, as well as bi-weekly auctions for EUAs on Wednesday from 9 to 11 am CET.Auctions for EUAAs are conducted on several Wednesdays from 1 to 3 pm CET.

    All details (including the quantities) can be found in the Auction Calendar.

    For all auctions of general allowances (EUAs) and for all auctions of aviation allowances (EUAAs), the common rules of the EU Auctioning Regulation apply. This also includes the main requirements for the auction's design:

    Auctioned product:

    • EUAs valid for compliance in the 3rd trading period of the EU ETS (2013-2020), as of January 2021: EUAs valid for compliance in the 4thtrading period of the EU ETS (2021-2030)
    • EUAAs valid for compliance in the 3rd trading period of the EU ETS respectively), as of January 2021: EUAAs valid for compliance in the 4thtrading period of the EU ETS respectively

    Auction delivery: Next-day delivery (T+1)

    Auction format:

    • Single round: Bids will be submitted during one given bidding window
    • Sealed bid: Bids will be submitted without seeing other participant's bids
    • Uniform price: All successful bidders will pay the same auction clearing price

    Lot size: 500 allowances

    Submission and withdrawal of bids:

    • Bids may be submitted, modified and withdrawn during the bidding window
    • Only authorized persons are entitled to place bids (bidder's representatives)
    • Each bid shall state:
      - Bid volume as integral multiples of lots of 500 allowances
      - Price in Euro for each allowance (in two decimal points)
      - Identity of the client when bidding on behalf

    Determination of the Auction Clearing Price:

    > All successful bids will be allocated at the Auction Clearing Price, determined as follows:

    • Bids are sorted in descending order of the price bid
    • Bid volumes are added, starting with the highest bid; the price at which the sum of volumes bid matches or exceeds the volume of allowances auctioned, shall be the Auction Clearing Price
    • Tied bids will be sorted through random selection according to an algorithm
    • All bids with a price higher than the Auction Clearing Price are successful; execution of bids made at the Auction Clearing Price depends on their ranking in the random selection
    • Partial execution of orders may be possible for the last successful bid matching the Auction Clearing Price, depending on the remaining quantity of allowances

    There are three reasons provided for in the EU Auctioning Regulation for a cancellation of an auction.

    • Article 7(5): the total volume of bids has fallen short of the volume of auctioned allowances
    • Article 7(6): the auction clearing price has been significantly under the price on the secondary market (see next question for more details)
    • Article 9: the proper conduct of the auction is disrupted or likely to be disrupted

    In case of general allowances, the number of auctions over which the combined volume to be auctioned must be distributed shall equal four times the number of auctions that were cancelled.
    In case of aviation allowances, the number of auctions over which the combined volume to be auctioned must be distributed shall equal two times the number of auctions that were cancelled.

    The “reserve price” is the minimum price that has to be reached for an auction to be cleared. In accordance with the rules governing the auctions, the methodology for determining the “reserve price” as well as its underlying definitions are handled strictly confidentially.
    The EU Auctioning Regulation is clear and binding: Information on the reserve price methodology is considered confidential information by law (see Article 62.1i of the Auctioning Regulation).This is in order to prevent any kind of manipulation or misconduct in the auctions, which could arise from the knowledge of this methodology

    - T+0: Auction date – the Auction is held and the results are known.

    - T+1:

    • Between 7:30 until 8:00 am CET, ECC debits the settlement account(s) of the Clearing Member(s) of the successful Bidder(s).
    • Between 8:00 and 8:30 am CET the auction revenues are transferred from ECC to the accounts of the Auctioneer(s).
    • At 8:30 am CET, ECC delivers emission allowances into the internal registry accounts of the successful Bidder(s).
    • The successful Bidder(s) can instruct ECC via a Registry Transfer Request (RTR) to transfer emission allowances to any other registry account in the Union Registry

    - T+2: The successful Bidder(s) which has/have instructed the Registry Transfer Request(s)receive(s) the emission allowances in the respective registry account(s) until 12:00 pm CET.

    The auctioning of allowances is governed by the EU Auctioning Regulation.
    This covers the timing, administration and other aspects of auctioning.
    In addition, for all EEX's emissions auctions, the respective rules and procedures of EEX and ECC apply.

    Participants must be eligible to bid according to EU rules(Article 18(1) and (2) Auctioning Regulation). Eligible under these rules are (see Eligibility Form):

    • Compliance buyers, bidding on own account, including any parent companies, subsidiaries and affiliates.
    • Investment firms and credit institutions, bidding on own account or on behalf of clients. These firms must be authorised under MiFID (Directive 2004/39/EC) or under the Credit Institutions Directive (Directive 2006/48/EC) respectively.
    • Business groupings of compliance buyers, bidding on own account and acting as an agent on behalf of their members.
    • Other intermediaries specifically authorized by the home Member State, bidding on own account or on behalf of clients.

    This means that any ETS operator or aviation operator is eligible to apply for admission to bid in the auctions, and so are their parent, subsidiary or affiliate undertakings. In addition, investment firms and credit institutions, authorised and regulated under EU law, may apply for admission to bid. Prior to their admission, foreign companies have to appoint an authorised agent with a registered office within the Federal Republic of Germany, such as EEX’s clearing house European Commodity Clearing (ECC).

    Operators can also form business groupings to bid as an agent on theirbehalf. Additionally, according to §13 of EEX’s Trading Conditions, any exchange participant can request another registered person to bid on his/her behalf. According to Art. 6 (3) of the Auctioning Regulation, a registered person is a natural person established in the European Union. With respect to § 33 (4) of EEX’s Trading Conditions, the appointed intermediary is responsible for the customer’s eligibility and which needs to be confirmed by completion of the Eligibility Form.

    Furthermore, EU rules provide for an additional category (investment firm status), namely intermediaries that benefit from an exemption from the authorisation requirements in EU law and have been authorised under rules laid down in the Auctioning Regulation. For example, this is relevant for intermediaries such as fuel traders, so they could easily add allowances to the products they offer to ETS operators.

    Admission requirements according to EU rules(Article 19(2) Auctioning Regulation):

    • Establishment in the EU (except for compliance buyers)
    • Nominated registry account
    • Nominated bank account
    • Appointment of at least one bidder's representative
    • Compliance with respective exchange requirements

    Details to relevant questions including a comparison of the options how to participate in the Emission Auctions can be found in the document "Participation in Emissions Auctions".

    The scope of other intermediaries eligible to bid in the auctions covers persons that are not MiFID-licensed but benefit from the MiFID-exemption for “ancillary activity” [MiFID Art. 2 (1) (i)]. These persons would have to obtain special authorisation from their competent national authority (e.g. from FCA or BaFIN) in order to be eligible to bid. Once such an authorisation in granted, they can participate in phase III auctions on all auction platforms, provided that they have been admitted to the respective exchange.

    The relevant competent national authority can grant such authorisation only if respective national legislationhas been enacted by the Member State in the first place.

    For example: In the UK, HM Treasury has made "bidding for emissions auctions" a new regulated activity within the Financial Services & Markets Act 2000 (FSMA) as part of its implementation of the EU Auctioning Regulation. This enables the UK financial regulator (FCA) to authorise and supervise intermediaries exempt from MiFID under Article 2 (1) (i) for bidding in the auctions. Those intermediaries (when based in the UK) will have to apply for such authorisation by submitting a "Variation of Permission (VoP) application" form to the FCA. For more information on the applications process you can also refer to the FCA Handbook.

    For example: For Germany, a similar provision is set out in the German Emissions Trading act ("Treibhausgasemissionshandelsgesetz", TEHG), namely in Article 8 (4) TEHG. Based on this piece of legislation, intermediaries exempt from MiFID under Art. 2 (1) (i) have to apply for authorisation by contacting the German financial regulator (BaFin).

    At the moment there are six options to participate in the auctions.
    Details can be found in the document "Participation in Emissions Auctions".

    All EEX members, including admitted EUA Spot members, must in addition prove their eligibility in the Phase 3 Auctions via the Eligibility Form. Furthermore, EEX may request supporting documents such as verification of your Union Registry account, current versions of your company’s annual report and extract from the commercial registry.

    EEX members may contact their responsible Key Account Manager from the EEX Sales Team in Leipzig, London, Madrid, Milan, Oslo or Paris to be guided through the admission process. Alternatively EEX members may directly contact the single Admission Team of EEX and ECC for the EUA spot market. This will include the completion of some basic forms in order to identify two persons responsible for registry transaction requests, ordering a technical connection and identifying an authorised trader for the spot market.

    Once setup is complete, EEX Market Supervision will send the member their login details for EUA spot trading and for the auction platform. There is no extra cost for existing members to join the spot market.

    The single admission team of EEX and ECC or the EEX Sales team will assist you in all aspects of the admission process (the order of the following points can vary):

    1.Establishing a contact: EEX will assist you with any questions you may have concerning your admission, the admission process itself and the necessary admission forms.
    2.Complete a training: The completion of the EEX exchange trader training or spot market emission rights training is required, except you choose an auction only membership without technical access.
    3.Choosing a technical connection: EEX offers you various technical connection opportunities depending on your needs.Details to relevant questions including a comparison of the options how to participate in the Emission Auctions can be found in the document "Participation in Emissions Auctions".

    A presentation especially for small and medium size operators is availablein the document "Participation in Emissions Auctions –explained in 5 minutes".

    Companies which would like to participate indirectly in the auctions may contact a clearing member of European Commodity Clearing (ECC), or a trading member of EEX, and request to enter into an agreement. Once the agreement has been concluded, the clearingor trading member is advised about their client’s bid preferences, and receives any necessary upfront payments in time for the auction.
    More information on the indirect auction access as well as existing participants providing this access can be found in the section Environmental Markets > Emissions Auctions
    During the auction, the member bids on their client’s behalf and has to reveal their client’s name per bid (as per the EU Auction Regulation). Settlement of successful bids is completed according to the terms of the agreement. For a full list of ECC and EEX members, please consult either the ECC website or the EEX website.

    No, there is no difference. Once you receive admission to EUA auctions, you can participate in EUAA auctions as well. Please be aware, that EUA and EUAA are auctioned in separate auctions with distinct dates. More information, e.g. the auction calendar, can be found in the section Environmental Markets > Emissions Auctions

    Yes, please note that a training session and a Trader Exam is part of the admission process if you choose to access auctions directly via the Auction System. However a training session and a Trader Exam is not necessary if you choose to access auctions only via calling or mailing to the helpdesk.
    Further information on the different options for access to the auctions can be found in the section access to the auctions.
    Please find more information on how to get your EEX exchange trader training or spot market emission rights training.

    Emissions Auctions -FAQPage 8Release 12.03.2020©EEX AG–part of eex groupBidding on behalf as well as trading on behalf can be done via an intermediary as well as via EEX’s Market Supervision Team. The difference is that bidding on behalf is the term used for the primary auctions where only buy-ordersare possible and trading on behalf is the term used for the secondary market where buy-and sell-orders are possible.

    Auction participants registered only in the United Kingdom can continue to participate in the EEX auctionsat least until the endof 2020. The basis for this is the agreement on the withdrawal of the United Kingdom, see here: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:22020A0131(01)

    Phase 4 of the EU ETS starts in January 2021. Phase 4 allowances cannot be used for compliance for 2020 (due in April 2021). EEX willauction:

    1.Phase 3 allowances until the last auction in December 2020
    2.Phase 4 allowances starting with the first auction in January 2021


    EEX Group DataSource

    The sFTP market data is generated at the end of the day every day. These are available for students as XLSX and CSV format. files. We are happy to provide you with data from our spot and derivatives markets if all the necessary requirements are met.

    Timeseries for several data products are available for the following markets:

    • Agricultural Derivatives
    • Environmental Auction, Spot and Derivatives
    • Freight Derivatives
    • Power Derivatives
    • Natural Gas Spot and Derivatives 

    The Power Spot data are managed by our colleagues from EPEX Spot in Paris: https://www.epexspot.com/en

    For more information and sample files, please have a look here: https://www.eex.com/de/marktdaten/eex-group-datasource/sftp-server

    If you´re interested in market data of our products for a scientific work/graduated thesis like Bachelor or Master thesis, you can apply for it in the following way:

    To gain access to the data you must (i) be enrolled in a university/college and (ii) your scientific work must be part of an official university project or a final thesis. In case, your thesis is written in the framework of a collaboration with a private company, the data must be purchased by the latter.

    You can request the data by sending an E-Mail to datasource@eex-group.com. Please attach a current certificate of matriculation and a short exposé about your work and your department.

    Please note that the EEX is always interested in receiving your scientific contribution. In this context, EEX is organize every year an award for original academic contribution.

    More information is available on our website:  https://www.eex-group.com/en/about/excellence-award

    In general, we provide EEX Market data free of charge for students who are completing a Bachelor- or Master program at a university or another scientific institution.

    Students who are currently completing a Ph.D. can also receive the data free of charge if their project is for purely scientific purposes and financed from their own funds. If a third party, e.g. a company, finances the thesis, the data will be charged.
    Students who are working on their bachelor's or master's thesis in cooperation with a company must also apply for a paid access.

    Market data of the European Energy Exchange AG include all commodities tradable at the EEX for different markets and products. EEX Market Data can be provided to students for scientific purposes only. For this purpose, data of the "sFTP- End of the Day" products will be provided. Access for real-time products, Desktop-Applications and transparency data products are not provided for free to students.

    Further information regarding our EEX Group DataSource services can be found here: https://www.eex.com/en/market-data/eex-group-datasource

    CSV and XLSX files generally prepared for 2019  and 2020 on the sftp server datasource.eex-group.com. Files created on the old sftp mis.eex.com before that date remain available in archive folders of the new sftp datasource.eex-group.vom.

     

    EEX Group offer its customers a sFTP server​​​​​​​ for all end-of-day products.

    For accessing the sFTP server, please use the following log-in data. Username and password were sent to all migrated customers in February 2019 and will be sent to new customers within the next 48 hopurs after placing the order.

    Server: datasource.eex-group.com

    Port: 22

    Username: new username

    Password: new password

    Important Notice: Please remember to select the encoded protocol “sftp” and to adjust your proxy and firewall settings.

    The EEX Group DataSource sFTP server receives a new file and folder structure. You can download an overview of the folder structure as well as the respective interface specifications and corresponding sample files via the following links:

    > Market Results File Folder Mapping
    > EEX Market Data – sFTP CSV Interface Specification
    > EEX Market Data – sFTP XLSX Interface Specification
    > EEX Transparency Data – sFTP Interface Specification
    > EEX Market Data - sFTP Files Overview

    EEX Group DataSource offers high-speed access to market data of EEX Group exchanges. The services offer 24/7 access and cover not only market data of a wide range of commodities, but also Transparency data of the European energy market.

    Service

    Service Description

    Frequency

    Real-time

    Delayed

    End-of-Day

    API

    Raw data in xml/ json

    x

     

     

    Desktop App

    Customised quotes, charts, curves, data history

    x

     

     

    Excel Tool

    Customised excel analytics

    x

     

     

    sFTP

    Aggregated and trade-specific data files in csv/ xlsx

     

     

    x

    Tables & Charts

    Online accessible views with customised solutions

    x

    x

    x

    For more information, please visit Market Data > EEX Group DataSource Services.

    Customers can easily place orders for internal and external usage online through EEX Group Webshop.

    Subscriptions can be cancelled on a yearly rhythm. If customers cancel their subscriptions until 31 October, the subscriptions will not be extended and end automatically on 31 December of the same year.

    If you want to cancel your subscriptions, please sent us an Email with your request to datasource@eex-group.com.


    EEX TT Screen

    Yes, this is possible.

    If you have an interest in FIX Drop Copy, please get in contact with us and we will organize this with the TT Development Team.

    They will support you creating and implementing this feature with the FIX interface at no additional costs.

    You will receive your log-in during the admission process.

    If you have any questions, please contact Member Readiness for admission and Customer Connectivity for technical topics.

    ECC Member Readiness
    phone: +49 341 2156-261
    e-mail: memberreadiness@ecc.de

    or

    EEX Customer Connectivity
    phone: +49 341 2156-466
    e-mail: technology@eex.com

    Yes, order routing via GCMs is available.

    The screen costs 1,800 EUR per year per user. You can find the prices  in the current Price List.

    For details on browser and system requirements, please refer to the website of Trading Technologies:

    > Browser- and System Requirements

    Yes, TT provides all relevant MIFID II fields for compliance.

    For more details, please refer to the website of Trading Technologies:

    https://www.tradingtechnologies.com/solutions/mifid-ii-compliance/

    There are multiple “Synthetic Order Types” available in the EEX TT Screen.

    For more details on Synthetic Order Types, please refer to the website of Trading Technologies:
    > https://library.tradingtechnologies.com/trade/order-entry-order-types.html
     
    If you are interested in using any of these order types, please contact:

    EEX Market Supervision
    phone: +49 341 2156-222
    e-mail: trading@eex.com

    or

    EEX Customer Connectivity
    phone: +49 341 2156-466
    e-mail: technology@eex.com

    We will enable these features for you.
     
    With the activation of Synthetic Order Types, Algo Trading will also become available.


    MiFID II / MiFIR Outline

    It is planned to enhance the T7 trading system to enable market participants who are pursuing a market making strategy to flag an order as market making. The new field will be called <LiquidityProvision> .

    Under Art. 25(2) of Regulation (EU) No 600/2014 and RTS 24 (Delegated Regulation No. 2017/580), trading venues shall keep at the disposal of the competent authority the relevant data to identify the algorithm of the participant primarily responsible for the investment decision or the execution of a transaction.

    Participants assign Algo IDs to their respective algorithms, which have to comply with the requirements of Art. 48(6) of Directive 2014/65/EU and Art. 10 of RTS 7 (Delegated Regulation 2017/584). In accordance with these requirements, EEX has to request that all participants execute a conformance test for their algorithms in a testing environment before the algorithms are used in production in order to avoid market disturbance. After 3rd January 2018 this is valid for each new algorithm andfor substantial changes to existing algorithms; algorithms include Quote Machines and also algorithms already in use.

    Each member who intends to use an algorithm has to submit a formal application to EEX Group and return the form “T11” with the respective data and duly signed. The application can be found under this link: Access > Admission (Existing Trading Participant > "Change in technical connection”).

    Participants using or intending to use any algorithms have to provide the form by 1 December 2017 at the latest to ensure readiness before the rules of MiFID II come into effect, please see also our email letter dated 27 October 2017.

    EEX will provide a test area for its T7 trading system and has adapted its technical implementation regulations accordingly.

    Algo_ID

    The Algo_ID has to be defined by the member. It has to be a numeric value with 19 figures due to technical specification. The value has to be included directly in the respective field within the order form, no short code mapping may be applied. Most of the front end system provider with respective algorithm functionalities will set the Algo ID’s. Please contact your provider.

    Iceberg Orders

    EEX considers systems that only manage Iceberg Orders not to be systems for algorithmic trading in the sense of MiFID II.

    Yes, ISVs may organize one-off tests of their trading algorithms (including any subsequent changes) which they offer to their clients and EEX Group will accept such one-off tests and will not require its members to test the respective trading algorithms again, provided that the ISV confirms towards the respective member(s) of EEX Group that a certain trading algorithm with a specified configuration and ID has passed all required conformance tests and the member of EEX Group confirms the same towards EEX Group as part of its application and that it will use the trading algorithm at EEX Group only with the configuration that has been tested and confirmed by the respective ISV.

    The MiFID II requirements for pre-trade controls for derivatives markets are:

    • Price collar check, which prevents orders with an excessive price difference to a reference price from entering the order book.
    • Maximum order quantity validation, which prevents orders with an excessive order size from entering the order book.
    • Maximum order value validation, which prevents orders with excessive order values from entering the order book.

    The price collar check requirement is covered by the existing T7 price reasonability check and extended price range functionality. The maximum order quantity validation requirement is covered by the existing user transaction size limit functionality in the T7 trading system.

    With T7 Release 6.0, participants will be able to set maximum order value limits for their users. The trading system calculates the value of each order entered into the order book and compares it to the maximum order value defined at the user level. If the order value exceeds the defined maximum order value, the order is rejected. It will be possible to skip this validation for orders and quotes entered via ETI or FIX gateways. Orders entered via the T7 trading GUI will always be validated against the maximum order value limits.

    As required by MiFID II/MiFIR and MAR, EEX Group has introduced ISINs at contract level to enable a more detailed reporting service based on contract/instrument level instead of product level. (Before, ISINs were only provided at product level.) Customers of EEX Group will receive access to these ISINs as part of the RDI interface (field “SecurityAltID”). Alternatively it will also become possible for members to retrieve the ISIN from a new instrument file EEX Group plans to provide within its regulatory member portal. Please look at the information on our website under the topic “Static data”: Markets > Reporting Services > Position Report

    The ISINs at product level are still valid and serve as a unique EEX Group product identifier.

    According to Article 26 par. 5 of MiFIR, trading venues are obliged to report certain transactions in financial instruments as well:

    “The operator of a trading venue shall report details of transactions in financial instruments traded on its platform which are executed through its systems by a firm which is not subject to this Regulation in accordance with paragraphs 1 and 3.”

    Non-investment firms and third county firms are such firms that are not subject to MiFIR. Therefore, EEX and Powernext are obliged to report transactions in financial instruments concluded on their regulated markets for all these members. The details that have to be reported by EEX and Powernext are the same details that an investment firm has to report (see Art. 26 par. 3 of MiFIR in conjunction with Commission Delegated Regulation (EU) 2017/590). Thus, the information to be reported includes inter alia the identification codes of the buyer and the seller as well as the buyer decision maker code. These codes are either the LEI for legal entities or the NATIONAL_ID for natural persons.

    LEIs and NATIONAL_IDs are further needed to complete the respective fields of the daily position reports sent by EEX and Powernext to the respective competent authority in accordance with respective implementing legislation of Art. 58 MiFID II (e.g., 2. FiMaNoG for Germany) in conjunction with Commission Implementing Regulation (EU) 2017/1093.

    In order for EEX and Powernext to comply with the obligations, non-investment firms that are active on EEX and/or Powernext need to provide EEX and/or Powernext with the necessary information.

    Details can be found here: "MiFID EEX overview short code mapping"

    Yes we confirm.

    Yes we confirm this.

    Confirmed. the data is deleted as soon as it is no longer required. Note: There are several retention periods required by law.

    The data will not be transferred outside the European Economic Area.

    Access is granted following the need to know principle to staff and service providers who require the access to perform their service.

    The ESMA Q&A on MiFID II and MiFIR commodity derivative topics clarifies that trading venues will report to national regulators positions resulting from transactions concluded on a trading venue, whereas investment firms report to national regulators positons resulting from transactions concluded outside a trading venue. German regulator BaFin has confirmed again in a call that they only see a reporting obligation for trading venues or investment firms operating a trading venue/OTC business, but not for Clearing Members and their NCMs. In order for trading venues and investment firms to fulfil this obligation, their clients - regardless of whether or not these are investment firms-, have to provide the trading venue or investment firm respectively with a complete breakdown of their position. To help non-investment firms (i.e. firms that do not have to be licensed as an investment firm under MiFID II) to fulfil their obligation, EEX Group is building a system that will only require supplementary data from these firms. It is for example planned to enhance the T7 trading system to enable market participants to flag an order as being risk-reducing. This flag will be called the <CommodityHedging> flag.

    Moreover, both investment firms and non-investment firms will receive the opportunity to make amendments to the daily position reports on the day following the trading day concerned. For more information see our section on position reporting following this link.

    Please note that EEX Group will also accept data deliveries by third party technical service providers subject to the condition that the service provider uses the members credentials to submit the respective member specific report.

    EEX Group plans to use the enhanced ITS4 schema agreed upon within the industry-working group led by the Futures Industry Association (FIA) and European Federation of Energy Traders (EFET). Please see to our website in the section Markets > Reporting Services > MiFID II / MIFIR Reporting for more information on the schema and sample files. Please note that this may still be subject to changes, as discussions with the NCAs on technical aspects of the interface are still ongoing. However with respect to overlapping contracts whose delivery period is not completely included in the spot month will be reported as other months’ positions ('OTHR') according to the respective ESMA Q&As.

    Yes, in general. Positions in Derivatives on Emission allowances will have to be reported as this is required by law. Legally, there is also an obligation to report positions in Emission allowances, however, as there are no positions in spot trading, nothing will be reported in that respect.

    Emission allowances will be financial instruments as of January 3rd, 2018. Therefore, transactions in Emission allowances are also within the scope of Article 26 MiFIR and will have to be reported accordingly. However, such reports are currently technically not accepted by ESMA.

    ESMA is currently in the process of verifying if and how national competent authorities of third countries are in line with the respective MIFID II requirements. This process is not expected to be finalised before 3 January 2018. Therefore, EU Member States and national competent authorities are requested to put in place transitional arrangements.

    The German Banking Act (Section 64v para 8) which will be applicable as of 3 January 2018 stipulates that a third country firm whose activities in Germany will require an investment firm license,may be subject to a preliminary exemption. This exemption will be valid from 3 January 2018 until the date ESMA has filed a decision on the entry of that firm into the register pursuant to Art. 48 of MiFIR, if it has filed a complete application for exemption with BaFin by 2 July 2018. BaFin plans to be ready to accept applications as of the beginning of 2018. So, please ensure that your company provides BaFin with its complete application for this exemption during the first half of 2018, if applicable.

    Further information can be found on our website under “Third Country Firms under MiFID II” and on the website of the German authority (German only).

    While regulators are expected to monitor and manage the position limits based on the position reports they receive, EEX Group will set up an early warning system that will send out an alert to the regulator when a position in a relevant contract listed at a trading venue operated by an EEX Group company might be breached. This information will be based on ECC’s clearing data and hence does not take into account whether the position is held on behalf of a client, whether the position is held for risk-reducing purposes or whether the market participant has an open position in the same contracts on other trading venues or in EEOTC contracts. An early warning system to the members is not planned at this point in time.

    ESMA has published a list of 106 liquid contracts that will receive a bespoke position limit (as of 24 October 2017). The list can be found on the ESMA website.

    For EEX Group, the following contracts will receive a bespoke limit:

    Power

    Venue product code(s)

    Trading venue MIC code(s)

    NCA

    Country

    Contract name

    Base product

    Sub-product

    Further sub-product

    Unit of measurement (UoM)

    F1B

    XEEE

    Bafin

    Germany

    EEX German/Austrian Power Future

    Energy

    Electricity

    Base load

    MWh

    F7

    XEEE

    Bafin

    Germany

    EEX French Power Future

    Energy

    Electricity

    Base load

    MWh

    FC

    XEEE

    Bafin

    Germany

    EEX Swiss Power Future

    Energy

    Electricity

    Base load

    MWh

    FD

    XEEE

    Bafin

    Germany

    EEX Italian Power Future

    Energy

    Electricity

    Base load

    MWh

    FE

    XEEE

    Bafin

    Germany

    EEX Spanish Power Future

    Energy

    Electricity

    Base load

    MWh

    FX

    XEEE

    Bafin

    Germany

    EEX-PXE Czech Power Future

    Energy

    Electricity

    Base load

    MWh

    F7

    XEEE

    Bafin

    Germany

    EEX French Power Future

    Energy

    Electricity

    Peak load

    MWh

    F1P

    XEEE

    Bafin

    Germany

    EEX German/Austrian Power Future

    Energy

    Electricity

    Peak load

    MWh

    DEPXEEEBafinGermanyEEX German Power
    Future
    EnergyElectricityBase loadMWh
    N1BXEEEBafinGermanyEEX German/Austrian OTF FutureEnergyElectricityBase loadMWh

    Gas

    Venue product code(s)

    Trading venue MIC code(s)

    NCA

    Country

    Contract name

    Base product

    Sub-product

    Further sub-product

    Unit of measurement (UoM)

    GPL

    XPSF

    AMF

    France

    GPL

    Energy

    Natural gas

    GASPOOL

    lots

    NCG

    XPSF

    AMF

    France

    NCG

    Energy

    Natural gas

    NCG

    lots

    PEG Nord

    XPSF

    AMF

    France

    PEG Nord

    Energy

    Natural gas

    Other

    lots

    PSV

    XPSF

    AMF

    France

    PSV

    Energy

    Natural gas

    Other

    lots

    TTF

    XPSF

    AMF

    France

    TTF

    Energy

    Natural gas

    TTF

    lots

    Yes, non-financial entities can make use of an exemption for those positions that are objectively measurable as reducing risks directly relating to the commercial activity of that non-financial entity. Delegated Regulation (EU) 2017/591 (RTS 21) outlines the hedging exemption as well as the application of the exemption. It states that these risk-reducing positions should be deducted from the short and/or long position before netting the gross position. While Delegated Regulation (EU) 2017/591 (RTS 21) outlines the general rules, national regulators might take different approaches to the concrete implementation of these rules.

    ESMA will approve the position limits proposed by national regulators. Following a public statement by ESMA national regulators will publish the limits before they have received the approval from ESMA as it will not be possible to finalise and publish all the position limit opinions for liquid commodity derivative contracts by the end of the year.

    On 29 November 2017 German regulator BaFin has published a list of indicative position limits for EEX power contracts under the following link (only in German). EEX has published the respective limits (insofar as they are applicable to contracts traded on its platforms) as well under this link. For these limits there is an understanding of using next month as spot month for physical futures and current month as spot month for financial futures.

    French regulator AMF will publish limits for the gas contracts also before the end of 2017.

    Contracts listed at EEX but not shown in the table below are considered illiquid and not subject to bespoke limits. The default limit of 2,500 lots applies in this case.

    Yes. Position limits are linked to the contract traded, not to the participant trading the contract. As of 3 January 2018, every commodity derivatives contract will get a position limit on the size of a net position which a person can hold in that contract. The person in this case refers to the end client holding the position, as well as the group entity of this company, regardless of whether or not they are a MiFID II investment firm. Positions in commodity derivative contracts on a trading venue (RM, MTF, OTF) will be aggregated with positions in contracts listed on other trading venues considered to be the same as well as with positions in economically equivalent OTC (EEOTC) contracts.

    However, according to the relevant provisions in MiFID II, there won’t be position limits for derivatives on emission allowances.

    Some national regulators have already opened their online notification tools. Please check with your national regulator for further information. A link to the FCA application tool can be found here. Applications to BaFin can be made informal by sending a letter including the company’s name, registered seat, an E-Mail contact and the precise naming of the applied exemption.

    This information can be found in MiFID II Art. 2, par. 1(j), Delegated Regulation (EU) 2017/592 (RTS 20) and the ESMA Q&A on MiFID II and MiFIR commodity derivate topics. In general, the tests (or threshold calculations) need to be conducted per asset class. Only transactions in financial instruments count towards the thresholds. Therefore, transactions in electricity and gas contracts having the characteristic “must be physically settled” within the meaning of Art. 5 of Delegated Regulation (EU) 2017/565 and that are concluded on an OTF will not be considered for the threshold calculation. However, since national legislation implementing MiFID II will only be applicable as of 3 January 2018, the current definition of financial instruments, which is based on MiFID I, applies until 2 January 2018. Therefore, also transactions in electricity or gas derivative contracts that have the characteristic “can be physically settled” and that are concluded on a non-MTF will not be considered for the threshold calculation. Please note that in July 2016 EEX and Powernext have both launched non-MTF trading platforms for electricity and gas contracts, respectively, transactions in which fulfil all the conditions to not be considered for said threshold calculations. As soon as the application process is open, both EEX and Powernext will apply for a license to operate an OTF to ensure that transactions concluded on these trading platforms will continue to not be considered for said threshold calculations, as of 3 January 2018. The non-MTF market will accordingly shut down by the end of 2 January 2018.

    Furthermore, transactions resulting from the fulfilment of a genuine obligation to provide a trading venue with liquidity, transactions concluded for hedging purposes and intra-group transactions will be excluded from the threshold calculations, see Art. 2 par. 4 of MiFID II and ESMA Q&A on MiFID II and MiFIR commodity derivative topics for further reference.

    The calculation for determining whether the company can benefit from the ancillary activity exemption in 2018 is based on the transactions from 1 January 2015 to 31 December 2017. Please note that there is a derogation from this time period, as outlined in Delegated Regulation (EU) 2017/592 (RTS 20). For more information on EEX’s and Powernext’s non-MTFs or EEX Group liquidity provision schemes, please contact mifid@eex.com.

    MiFID II Art. 1 and 2 outline the scope of firms subject to MiFID II and respectively the exemptions that could be applicable. The ancillary activity exemption (MiFID II Art. 2, par. 1(j)) is particularly relevant for firms trading in commodity derivatives. It exempts persons from becoming an investment firm under MiFID II, if they are dealing on own account, or providing investment services to clients, in commodity derivatives, provided this is an ancillary activity to their main business. Delegated Regulation (EU) 2017/592 (RTS 20) outlines what it means for an activity to be considered ancillary to the main business. In essence, a person dealing in commodity derivatives needs to pass two tests: (1) the market share test and (2) the main business test. Both have to be conducted on an asset class basis. Whereas the first test compares the size of a person's trading activity against the overall trading activity in the European Union, the second one compares the size of the trading activity with the size of the main activity undertaken by the group.

    Importantly, every market participant has the obligation to annually notify its competent financial market regulator(s) that it will make use of the exemption. Please check with your national regulator for further information.

    The ESMA Q&A on MiFID II and MiFIR commodity derivative topics provides further guidance on the tests. The ESMA opinion on the market size calculation provides more information on the overall EU trading activity, per asset class.

    The original scope of MiFID I has been expanded to cover a larger group of companies and financial products. MiFID II will bring the majority of non-equity products into a robust regulatory regime and move a significant part of OTC trading onto regulated platforms. Furthermore, MiFID II strengthens pre- and post-trade transparency requirements, sets new rules for algorithmic trading and introduces position limits for commodity derivatives. Moreover, investor protection has become a key focus of MiFID II.

    MiFID I has been reviewed to take into account developments in the trading environment since its implementation in 2007 and, in light of the financial crisis, to improve the functioning of financial markets making them more efficient, resilient and transparent.


    REMIT Transaction Reporting

    The REMIT Fee was introduced by the European Commission’s decision on REMIT fees (EU) 2020/2152 and applies as of 1st of January 2021.

    Please find the official Q&A document from ACER via the following link: https://documents.acer-remit.eu/questions-and-answers-on-remit-fees/

    The fee is record-based which means that all records (Orders including lifecycle events and Trades) for each Market Participant and each OMP are counted. The transaction record-based fee component in year n is based on the number of transaction records reported in year n-1, as well as their complexity and diversity.
    ACER validates the submission time and not the transaction time.

    The following cluster have been generated:

    Cluster 1 pricing scheme
    Applies for supply contracts traded at OMPs and for transportation contracts

    Transaction records per data clusterFee subcomponent in EUR
    1 to 1,000250
    1,001 to 10,000500
    10,001 to 100,0001,000
    100,001 to 1,000,0002,000
    More than 1 million, up to 10 million4,000
    More than 10 million, up to 100 million8,000
    More than 100 million16,000

    Cluster 2 pricing scheme
    Applies for supply contracts traded outside OMPs

    Transaction records per data clusterFee subcomponent in EUR
    1 to 1,000250
    1,001 to 10,000500
    10,001 to 100,0001,000
    100,001 to 1,000,0002,000
    More than 1 million, up to 10 million4,000
    More than 10 million, up to 100 million8,000
    More than 100 million16,000

     

    EEX will collect the ACER REMIT fee from the Reporting Customers via simple pass-through of the member specific component, as recommended by ACER and EU Commission. A new additional handling fee on “Reporting to ACER” service has been introduced in the List of Services and Prices of EEX AG to handle REMIT Fee management. It amounts to 120 EUR / year and market segment (EEX Gas / EEX Power / EPEX).

    In case the Market Participant has chosen Additional Service “Transfer of REMIT Data File to ACER”, EEX will invoice the Market Participant once a year as ACER invoices the RRMs on a yearly basis. This amount will be separately invoiced from the REMIT Data Services fee.
    In case the Market Participant has chosen Basic Service or Additional Service "Data submission to Equias”, EEX does not act as the ACER RRM for that Market Participant and therefore will not charge a ACER REMIT Fee.

    Please contact your RRM for further details.

    ACER will charge an ex-ante payment at the beginning of each calendar year (n) based on the previous year’s (n-1) records. The following year (n+1) ACER will perform a correction of the ex-ante payment based on effective counts in the year (n).

    In addition to that ACER will calculate in the following year (n+1) also an ex-ante payment for the year (n+1) based on the records of year (n).

    The correction of the amount for year (n) and the ex-ante-payment for year (n+1) will be summed up.

    No, the transfer of REMIT data files to ACER is conducted automatically and monitored by the EEX compliance services team. Market participants do not have to interfere in order to fulfil their reporting obligation, BUT they are obliged to download and verify their REMIT data files on a regular basis.

    Reporting to Equias is an established additional service of EEX Group’s REMIT transaction reporting, but it can only be selected together with the basic service of EEX.

    Market participants obliged to report REMIT data to the Swiss Federal Electricity Commission ElCom are offered an additional service with EEX and Powernext within the REMIT Data Services Agreement. REMIT data files of EPEX SPOT members in Switzerland will be sent to ElCom simultaneously with the data transfer to ACER.

    Members that wish to have access to the Trayport reporting service for EEX should select the basic service. Trayport will then retrieve the data directly from the FTP.

    EEX is the authorised Registered Reporting Mechanism (RRM) for the reporting of EEX trading data. Reporting is performed using the ACER Code B0000104M.DE. EPEX SPOT is the authorised RRM for the reporting of EPEX SPOT trading data, using the ACER Code B0000258F.FR for EPEX SPOT SE and B00008938.UK for EPEX SPOT UK.

    EMIR reporting will not replace REMIT reporting since there is no guarantee that all reportable data under REMIT are reported with EMIR. To sum this up: Even if both reporting obligations have certain overlaps, they still differ in detail.

    As of 7 April 2016, transactions in wholesale energy markets that are not concluded at an Organised Market Place (OMP) need to be reported.

    For REMIT phase II reporting, EEX offers services together with Seven2one. Seven2one uses the RRM infrastructure of EEX, but provides customer support as well as several optional solutions for data connectivity and processing.

    The REMIT phase II solution (incl. OTC transaction reporting) offered by EEX and Seven2one is available to all market participants; an exchange membership is not a prerequisite.

    For further information, please contact sales@seven2one.de

    REMIT Art. 4 is not covered by EEX Group’s REMIT transaction reporting service. The reporting of REMIT inside information has to be delegated with a separate agreement in consultation with the EEX transparency support team. Please contact support@eex-transparency.com for further assistance.

    Everyone who participates in wholesale energy markets within the Union is obliged to report under REMIT. According to ACER, there is no difference whether or not the person resides within the EU or whether or not they are professional investors. Moreover, non-EU and non-EEA market participants are covered by REMIT when entering into transactions, including the placing of orders to trade, in one or more wholesale energy markets in the Union.

    The benefits include:

    • having one interface for delegating automated REMIT Transaction and EMIR Trade Reporting
    • significant reduction in the reporting efforts for REMIT transaction data
    • the availability of REMIT & EMIR data files for downloading
    • monitoring of reported data and reporting status via an easily accessible web interface

    The following steps need to be completed:

    • Application for Admission to the concerning Organised Market Place (OMP)
    • Registration as a Market Participant at your National Regulatory Authority (NRA)
    • Filling in and signing the current REMIT Data Services Agreement with EEX Group

    Reporting of Inside Information

    Regardless of whether current or future inside information is actually available, all market participants are obliged to specify a place for the disclosure of inside information (REMIT article 9). Therefore, ACER recommends the use of official platforms.

    The use of an official platform is highly recommended by REMIT and MAR.

    ‘…inside information should be disclosed in a manner ensuring that it is capable of being disseminated to as wide a public as possible. This is why the Agency believes that the disclosure of inside information through platforms has its merits…’ (ACER Guidance 4th Edition)

    ACER will only collect inside information from platform web feeds. They will not collect web feeds from market participants’ websites.

    A dual approach for disclosure of inside information is described in the ESMA Final Report (p.46). If platforms for the disclosure of inside information exist, for instance EEX Transparency platform, market participants should use such platforms.

    All requirements concerning the public disclosure and forwarding of inside information resulting from REMIT, Transparency Regulation and MAR are fulfilled by the EEX Transparency Platform.

    We provide standard message types for submitting the data to the EEX Transparency Platform. The submission of data regarding capacity, usage, non-usability and Ad-hoc Ticker messages is offered for each commodity.

    EEX provides a free Transmission and Reporting Tool, which is continuously developed and updated. The communication is certificate-based and takes place through a technical standard (web service).

    As backup, you can use our EEX Online Tool. It can be used in case of customers’ reporting system failure. It is a secure and certificate-based browser solution for transmission of inside information via text messages.

    Submitted data will be published on the EEX Transparency Platform immediately and automatically forwarded to ACER.

    Market participants without facilities are, at the very least, obliged to disclose business inside information. For this purpose we recommend the EEX Online Tool. It is a secure and certificate-based browser solution for the publication of inside information on the EEX Transparency Platform. Data will be immediately forwarded to ACER.

    Under REMIT, all electricity and natural gas market participants who are registered with an EU National Regulatory Authority are required to specify a place for the disclosure of inside information. This place must be specified whether or not the market participant believes they have information to disclose.

    Under MAR, all emission allowance market participants with company-wide (including all EU-subsidiaries) aggregated emissions of at least 6 million tons of CO2 equivalents or, installations with at least 2,430 MW rated thermal input are required to disclose inside information.