European Energy Exchange
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| European Energy Exchange AG | |
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| Type | Physical commodity and derivates exchange (energy) |
|---|---|
| Location | Leipzig, Germany |
| Coordinates | 51°20′17″N 12°22′45″E / 51.3379628°N 12.3790781°E |
| Founded | 2002 |
| Key people | Peter Reitz (CEO) Steffen Köhler (COO) Jens Rick (CIO) Anja Kiessling (CFO) |
| Currency | EUR |
| Commodities | Electric power Natural gas CO2 Emission Allowances Guarantees of Origin |
| Website | www |
European Energy Exchange (EEX) AG is a central European electric power and related commodities exchange located in Leipzig, Germany. It develops, operates and connects secure, liquid and transparent markets for energy and related products, including power derivative contracts, emission allowances, agricultural and freight products.
History
[edit]The EEX emerged as a result of a merger between LPX Leipzig Power Exchange and the Frankfurt-based EEX in 2002. Deutsche Börse Group's derivatives business unit Eurex acquired the majority share in the EEX in March 2011.[1]
Ownership and subsidiaries
[edit]EEX AG is majority owned by Deutsche Börse. It holds shares in the following companies:
- EEX Asia, Cleartech (Cleartrade Exchange Pte Ltd.) (100%)
- EEX CEGH Gas Exchange Services GmbH (51%)
- EEX Link GmbH (100%)
- Enermarket GmbH (40%)
- EPEX SPOT SE (51%)
- European Commodity Clearing AG (100%)
- Grexel Systems Ltd. (100%)
- KB Tech Ltd. (100%)
- Nodal Exchange Holdings, LLC (100%)
- Power Exchange Central Europe a.s. (66,67%)
- Spark Pte. Ltd. (25%)
EEX announced in 2017 that it had reached an agreement to acquire the US-based Nodal Exchange. [2] [2]
Trading volume
[edit]In 2020, the trading of electricity on the EEX Power Derivatives Market amounted to 6,456 TWh (terawatt hours), compared with 5,830 in 2019. In the year 2020, a total of 622 TWh was traded on the Power Spot Markets of EPEX SPOT (2019: 598 TWh). In the field of natural gas, the volume traded on the EEX amounted to 2,412 TWh, a slight decline of minus 5 percent compared with the previous year (2019: 2,546 TWh). The volume of trading in emission allowances amounted to 1,318 million metric tons in 2020 in total (previous year: 1,139 million metric tons).
Spot market
[edit]The spot market for electricity is operated by EPEX SPOT, a joint venture owned by German EEX AG and French Powernext SAS (its 100% subsidiary). Each day of the year, EPEX SPOT conducts day-ahead auctions for three market areas: Germany/Austria, France, and Switzerland. Physical delivery of power occurs the following day.
EPEX SPOT also offers an intraday market for Germany, France, Belgium, the Netherlands, Luxembourg, Switzerland, Austria, and the United Kingdom. The market, which operates continuously without exceptions, can be utilized to meet short-term electricity needs or to trade excess capacity. Participants can purchase electricity up to 45 minutes before each hour for that specific hour. Trading for electricity on the following day can start from 15:00.
The ability to trade all day on the natural gas spot market was introduced in 2011.[3] On the spot market, companies can trade natural gas on a continuous basis for the current day (within a day), one day, and two days in advance, as well as for the following weekend. Since the launch of 24/7 trading, EEX has also offered seamless trading with a minimum lot size of 1 MW (in addition to 10 MW contracts). Short-term gas quantities can be traded on the exchange for delivery in the market areas GASPOOL, NetConnect Germany (NCG), and the Dutch Title Transfer Facility (TTF).
EEX also offers a spot market for EU allowances. Since 2005, EEX has operated both spot and derivatives markets in emission allowances. [4] EEX has offered trading of emission allowances on the basis of the EU Emissions Trading Scheme (EU ETS) since 2005. EEX currently runs a secondary market for continuous trading on a spot and derivatives basis for EU ETS allowances (EUA, EUAA) and Kyoto credits (CER, ERU). [5][6]
As of March 26, 2008, it is possible to trade CER futures on the EEX (Certified Emission Reductions) global emission credits in accordance with the Kyoto Protocol. On April 14, 2008, EEX and Eurex launched trading of options on EUA Futures. Since January 2010, EEX AG has run the auctioning of the emission allowances issued by the Federal Ministry of the Environment. All trading participants admitted to trading in emission allowances on EEX are able to take part in the auction without any further preconditions regarding licensing. From the very beginning, this also included all trading participants taking part in the existing Eurex cooperation on the derivatives market. In addition, EEX also carries out the EUA auctions for other countries (Poland, Hungary).
The European Energy Exchange (EEX) has won the tendering procedure for the transitory auctioning platform for the EUA auctioned off by Germany for the third emissions trading period in February 2012, and it was chosen as a cooperation exchange for the NER30 program of the European Investment Bank (EIB). As of April 30, 2012, emission allowances for the aviation industry (EU Aviation Allowances, or EUAA) will also be offered for trading. Furthermore, Futures on Emission Reduction Units (ERU) will be launched at the end of April. In March, EEX extended the futures on Certified Emission Reductions (CER) for all maturities of the third trading period.
Derivatives market
[edit]Participants on the EEX can trade power contracts (weeks, months, quarters, and years) up to 6 years in the future. The Power Futures are financially settled contracts, but they can be physically delivered in Germany, France, Austria, Belgium, the Netherlands, and Italy. Besides electricity and natural gas futures (market areas GASPOOL and NCG), a broad range of CO2 derivatives (futures on EUA, CER, EUAA, and ERU) can be traded at the EEX-Derivatives market.
Clearing and settlement
[edit]The clearing and settlement of all exchange transactions are done by the European Commodity Clearing AG (ECC). ECC was founded in 2006 with the transfer of the EEX clearing activities to this subsidiary. [7] Specialized in the physical delivery of energy products, ECC is a dedicated clearing provider for 10 exchanges: European Energy Exchange (EEX), EEX Asia, EPEX SPOT, Powernext, and Power Exchange Central Europe (PXE), as well as the partner exchanges HUPX, HUDEX, NOREXECO, SEEPEX, and SEMOpx. Furthermore, EEX and ECC provide the service of trade registration. This service enables the trading participants and the trade registration participants to conclude transactions through registration by mutual agreement or to have over-the-counter transactions registered.
Transparency
[edit]EEX operates "Transparency in Energy Markets," the neutral platform for energy market data that fulfills the statutory publication requirements and implements the market participants' voluntary commitments. The platform was established by EEX and the four German transmission system operators and launched in October 2009. In 2011, the Austrian transmission system operator Austrian Power Grid AG joined the cooperation. EEX is in charge of the operation of the platform, which comprises plausibility checking, anonymization, aggregation, and publication of the data reported.
On September 2, 2014, the European Energy Exchange (EEX) launched its new transparency site. At www.eex-transparency.com, visitors can gain access to comprehensive fundamental data and relevant information for wholesale energy trading. The website is a further development of the existing platform "Transparency in Energy Market" and contains information about the capacity, utilization, and availability of facilities for the production of electricity, as well as new information on the storage of electricity and natural gas consumption.
See also
[edit]
References
[edit]- ^ "Deutsche Boerse unit buys majority in EEX". Reuters. 23 February 2017. Retrieved 4 March 2017.
- ^ "EEX acquires 100% ownership of US Nodal Exchange | Business Wire", May 04, 2017.
- ^ "EEX: 24/7 Gas Trading Launched Successfully - First Transactions Concluded In The New TTF Market Area". m.mondovisione.com. Retrieved 5 May 2024.
- ^ Emission Allowances Overview Archived 4 March 2014 at the Wayback Machine
- ^ Emission Allowances Secondary Market Archived 4 March 2014 at the Wayback Machine
- ^ "TSX closes in the red as lower oil prices hurt energy stocks". Retrieved 19 February 2024.
- ^ Press Release, 07/05/2006 Archived 16 April 2014 at the Wayback Machine
