Against the background of the conflict in Ukraine, energy markets are experiencing unprecedented price developments. In this turbulent time, EEX and ECC continue to ensure the stability of trading and clearing for all listed energy and commodity contracts. On this page EEX and ECC are publishing and maintaining relevant information.
Keeping markets open
The importance of free price formation in times of turmoil
Regulated exchanges operating the wholesale energy markets provide essential transparency on prices on the physical underlying of energy supply and demand. A robust and transparent price formation process, combined with sound policies to ensure and orderly market, is essential under any market circumstances but especially when markets are moving.
How does EEX deal with extreme price volatility?
General information on the volatility safeguards and other price determination safeguards EEX has implemented since the go-live of MiFID II in 2018 can be found on the respective website. Furthermore, EEX has published a customer information on a potential derivatives market suspension in case of major disruptions of gas delivery. In a separate Q&A document, EEX and ECC provide more information about such a potential derivatives market suspension.
Risk Management & Collateral
European Commodity Clearing (ECC) is a central clearing house which specialises in energy and commodity products. ECC assumes the counterparty risk and guarantees the physical and financial settlement of transactions, providing security and cross-margining benefits for its customers. As part of EEX Group, ECC provides clearing services for EEX, EEX Asia and EPEX SPOT and for the partner exchanges HUPX, HUDEX, NOREXECO, SEEPEX and SEMOpx.
Physical settlement in case of imbalances
Besides the financial settlement, the clearing house ECC also ensures the physical settlement of all respective transactions. With this respect, ECC closely cooperates with European Transmission System Operators (TSO) and Hub Operators for power and natural gas.
The European natural gas and power markets are divided into
- the physical flow layer, where physical entries respectively production and consumption volumes are managed by the grid operator having own balancing measures and
- the commercial rights layer on the so called Virtual Trading Points (VTPs).
Power and natural gas transactions cleared by ECC are related to Virtual Trading Points and therefore decoupled from the physical flows. If any imbalances occur, the relevant and individual rules and costs of each TSO or hub operator will apply.
Trading & clearing in case of sanctions
EEX, as an exchange established under public German law, and ECC, as a Central Counterparty (CCP), are required by regulation to admit members based on non-discriminatory, transparent and objective criteria in accordance with applicable law.
Accordingly, EEX and ECC monitor relevant sanction regimes and implement measures as required by the relevant sanction regime.