A New Market Model for the Nordics
EEX will offer zonal futures for all Nordic bidding zones, a proven and successful market model in all other 20 European power derivatives markets.
EPEX’s trusted, NEMO-harmonised indices will form the underlying references for the new products.
EEX is confident that overall liquidity in the Nordics can be improved by offering zonal futures, as the market will be accessible for a wide pool of pan-European power traders who can execute geographic trading strategies and capture cross-margining efficiencies. Nordic participants can also hedge using the existing Nordic System Price products offered by EEX.
EEX is committed to working together with the Nordic trading community and its existing customers to facilitate the adoption of the new zonal futures and ultimately build more liquidity in the Nordic region.
Zonal Futures Product Scope
EEX will list zonal base load futures for all 12 Nordic bidding zones. The scope of available maturities will vary depending on specific factors, such as the presence of interconnectors with continental markets, the prevalence of renewable energy capacity, and existing liquidity. The Nordic Zonal futures are expected to go live in Q4 2023.
|Country||Bidding zone||Baseload futures|
|Denmark||DK1, DK2||Day, Weekend, Week, Month, Quarter, Year|
|Finland||FI||Month, Quarter, Year|
|Sweden||SE1||Month, Quarter, Year|
|SE2, SE3, SE4||Week, Month, Quarter, Year|
|Norway||NO1, NO2||Week, Month, Quarter, Year|
|NO3, NO4, NO5||Month, Quarter, Year|
EEX is planning to list location spreads along with the new zonal futures. In fact, this is seen as a key measure to increase overall liquidity in the Nordic region, as it grants EEX’s network of pan-European traders access to the market and facilitates the execution of geographic trading strategies. Spreads enable trading participants to efficiently trade the price differences between these delivery areas with guaranteed execution. Location spreads will be offered for Nordic bidding zones which are interconnected with continental markets and inter-zonal within the Nordic region as per market demand.
Nordic System Price
Details on EEX’s System Price contracts are provided below:
EEX Nordic Power Futures
|Trading hours||Tradeable maturities||Delivery rate||Tick size||Fullfilment|
|8:00 am to 6 pm (CET)||The current week and the next four weeks, the current month and the next six months, seven quarters and six years||1 MW||€ 0.01 per MWh||Cash settlement|