In the first half year of 2022, EEX Group continued to offer liquid and secure markets for the energy and commodity community. H1 2022 has been characterised by a turbulent market environment, with high uncertainty and volatility as a result of the ongoing war in Ukraine.
Peter Reitz, EEX CEO, comments: “Open and secure markets as well as reliable clearing services, as offered by EEX Group, have shown their relevance during the past 6 months. I’m proud to say that we continued to run our markets on a stable basis, and that we were able to support our customers by offering certainty in these uncertain times”.
In a volatile market environment, EEX Group achieved volume increases in the majority of its asset classes, providing a “safe haven” for the market. This applied particularly to the European natural gas markets. In the European power markets the trend towards cleared volume has been increased significantly – with EEX gaining market share in an overall declining market. Clearing is a secure way to mitigate counterparty risk and the cross-margining effects across the power, gas and further markets allow participants to conserve liquidity as “only” the net position is considered for margining.
In the first half of 2022, EEX Group’s global power volume grew by 5% to 3,691.5 TWh.
- The trading volume in the European Power Spot markets amounted to 306.5 TWh (H1 2021: 315.4 TWh). While the total volume declined slightly, intraday markets continued to grow, achieving a 6% increase as against H1 2021.
- The European Power Derivatives markets decreased by 11% to a trading volume of 1.891.4 TWh. However, EEX recorded increases in the Austrian (+97%), Belgian (+57%), Dutch (+78%) and Swiss (+78%) Power Futures as well as in the Nordic Power Futures (+26%). Despite decreases in larger markets such as Germany and Spain, EEX market shares significantly increased in an overall shrinking market.
- The overall market share for the European and Japan Power Derivatives market in H1 2022 amounts to 57% in comparison to 41% in H1 2021. German Power Futures reached a market share of 70% and Spanish Power Futures amounted to 80% while French and Italian Power Futures reached a market share of 72% and 84% respectively.
- US Power Derivatives operated by Nodal Exchange rose by 39% to 1.490.6 TWh traded in the first half of the year 2022, confirming its strong position in the North American Power market.
- Trading volume in Japanese Power Futures totalled 2.933 GWh. In June, total trading volume at EEX exceeded 10 TWh with 280 transactions registered during one month – a new record.
Natural Gas Markets
EEX Group’s global natural gas markets totalled 3,023.3 TWh, up 128% as against H1 2021 (1,326.4 TWh).
- The European Gas Spot markets reached a volume of 1,499.2 TWh, which is a 74% increase compared to H1 2021. EEX recorded increases across all gas hubs, strengthening the price signal for these products. The trading volume on the largest market – the Dutch TTF – more than doubled to 647.9 TWh. The market share of the European Gas Spot market amounted to 85% in H1 2022 in comparison to 66% in H1 2021.
- Trading on the European Gas Derivatives markets more than tripled to 1,437.0 TWh. EEX recorded strong increases across its market areas, in particular on the German THE (+840%), French PEG (+569%), Austrian CEGH (+365%) and Dutch TTF hub (+135%). The market shares of European Gas Derivatives market increased from 2% to 5% y-o-y.
- Particularly under stressed market conditions, EEX proved to be the robust and reliable marketplace to trade natural gas across various hubs, with efficient cross-commodity margin offsets for the customers.
- The US Natural Gas markets showed substantial growth, reaching 87.1 TWh (H1 2021: 4.4 TWh)
EEX Group’s Environmental markets in North America continued their growth trend in the first half of the year while trading in Europe environmental products showed a downward trend.
- The trading volume in the North American Environmental markets increased by 28% to 136,435 contracts.
- Trading volumes on the European Environmental markets declined to 563 million tonnes of CO2 (H1 2021: 742 million tonnes of CO2).
- In May 2022, EEX Group announced its entry into the Voluntary Carbon Market with a product suite built with partners which answers the need to offset emissions from e.g. private companies. As part of the global listing approach, the VCM product suite was launched in June in North America by Nodal Exchange, in collaboration with IncubEx, Air Carbon Exchange (ACX) and Net Zero Markets, with first trades registered during the month.
EEX Group’s Dry Bulk Freight business recorded a trading volume of 369,462 lots which marks a decrease due to a lower demand of dry bulk tonnage.
The total trading volume in EEX agricultural products increased by 5% to 27,976 contracts.
- The EEX Dairy Derivatives contracts continued its growth trend. In the first six months of 2022, the volume increased by 26% to 19,581 contracts (equals 97,905 tonnes of goods equivalent), driven by the strong performance of the Butter (+ 4%) and Skimmed Milk Powder Futures (+ 36%).
- EEX entered into a partnership with the New Zealand Exchange (NZX) and Fonterra to take ownership stakes in the global dairy auction platform Global Dairy Trade (GDT). Fonterra, NZX and EEX now each hold an equal one-third (33.33%) shareholding in GDT.
“In light of the current energy crisis, we will continue to provide our customers with secure trading and clearing services. In parallel, climate change is another huge challenge we are facing. That is why EEX Group is committed to support the transition towards sustainable markets and a decarbonized energy sector. The launch of products for the Voluntary Carbon Market as well as further initiatives like the lauch of European auctions for guarantees of origins in September shows once again our commitment to a greener future”, concludes Peter Reitz, EEX CEO.
Please click here to access the full EEX Group H1 2022 volume report.
EEX Group builds secure, successful and sustainable commodity markets worldwide – together with its customers. The group offers trading in power, natural gas, environmental products, freight and agriculturals as well as subsequent clearing and registry services, connecting a network of more than 800 trading participants. EEX Group consists of European Energy Exchange (EEX), EPEX SPOT, EEX Asia, Power Exchange Central Europe (PXE) and Nodal Exchange as well as the registry provider Grexel Systems and software companies KB Tech and Lacima. Clearing is provided by EEX Group’s clearing houses European Commodity Clearing (ECC) and Nodal Clear. EEX Group is part of Deutsche Börse Group. More information: www.eex-group.com
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