On Top of the World
While 2020 may be the year that most of us would like to forget, we were incredibly happy and grateful to retain EEX Group’s position as the number one exchange in power trading worldwide for the fourth consecutive year. In total, our global power trading volumes increased by more than 10% to 7,077 TWh.
In European power derivatives, volumes grew by 19%, recording a new all-time record. Also, for the first time in our history, traded volume exceeded 4,000 TWh in a single year. While the German, French, Italian, Hungarian and Spanish Power Futures contributed the largest volume in absolute terms, the Belgian, UK and Nordic Power Futures also reported triple-digit growth rates which shows the broad growth across all regions.
In the US, Nodal Exchange gained more than 50% of the Open Interest in US power futures trading, further strengthening its position in the US power market.
The most exciting market entry in 2020? (as if you had to ask… 😊). Of course we’re talking about our launch into the Japanese power market! Having launched in May last year, we achieved a total trading volume of 587.2 GWh in Japanese power derivatives and broke a number of records along the way. We look forward to building this exciting market together with our customers even further over the coming months and years.
> To the Power Derivatives Market Update 2020
> To the Power Derivatives Volume Report 2020
Breaking records in Japan
In January, EEX set a new record in Japan Power Futures by registering over 1 TWh of volume in a single month for the first time since entering the market in May 2020.
At the beginning of 2020, Japan experienced strong movement in its power markets which resulted in a major upswing in long term hedging with all periods (weekly, monthly, quarterly and seasons) being actively traded on EEX. Throughout the course of January, liquidity on EEX Japan Power Futures continued to build with end of month volumes exceeding the total traded volume achieved in 2020.
As if January wasn’t busy enough, we also staged the “Building Markets Together – Japan 2021” digital summit! As you can appreciate, it was a big undertaking - 3 panel discussions, 3 Q&A sessions and 2 presentations which involved 18 of our biggest customers and supporters in the Japan Power space, being broadcast around the world with simultaneous language translation. However, all the effort paid off and we’re happy to report that over 1,000 delegates tuned in for the 3 hour summit on the day.
If you didn’t get the chance to view the summit first time around, fear not! Simply click on the link below to view the entire conference.
Giving our customers more Options…
On 15th February, we introduced new Futures Styled Margin Options which extend trading opportunities for customers at EEX. Futures Styled Margin Options are a more liquidity-preserving options product, as the up-front premium payment is broken down into daily margin payments - making it easier for portfolio and risk managers to evaluate their daily exposure. Customers now have the choice to use both instruments, Equity Styled Options and Futures Styled Options, in parallel, to see which products best suit their needs.
To learn more about the new Futures Styled Options, check out the webinar (Video on the right) with Norbert Anhalt which examines the different option types on the EEX power market and explores how trading participants can use the options as a hedging instrument.
Unlocking the potential of Polish power
In February 2021, Polish Power Futures at EEX achieved their highest monthly volume so far with 438 GWh traded. February also saw the successful launch of the Polish day-ahead auctions operated by EPEX SPOT, coupled via the Multi-Regional Coupling, ensuring one single price in Poland and providing reliable price signal to the market. We’re convinced that this spot offering is a watershed moment for the Polish market which will attract many international customers.
In our second Power Profile series, Michael Mervyn-Jones chats to Tim Greenwood and Dina Lašová on why now is the right time to be looking at Poland and how EEX is helping customers unlock its potential.
Building Markets Together 2021
The global trading landscape has seen considerable change over the past decade. Factors such as decarbonisation, digitalisation and increased regulation have had a huge impact on commodity markets worldwide and exchanges have continued to evolve in order to meet the needs of its clients. Building Markets Together 2021 – EEX Group’s digital conference which takes place on the 15th April will explore the key themes that will shape and influence the commodity markets of the future and outline how EEX Group, as a global commodity exchange, will continue to develop its portfolio through collaboration with its customers and partners.
In addition to a number of expert panel discussions, Q&A sessions and live demos from our partners, the conference will feature a range of “Trade Talks” which relate specifically to the EEX Group portfolio of products. Make sure to check out our dedicated power derivatives sessions!
For the full agenda and registration details, just click on the link below.
> Secure your free place for Building Markets Together