Exchange Council strengthens product extension to further Eastern European markets

One of the meeting’s main topics was the further development of the power derivatives portfolio. Currently, EEX’s offering for the power derivatives market comprises 20 European market areas in addition to the recently launched Japanese power futures. In regards to European power derivatives, there has been a trend towards trading in short-term products in recent years. The introduction of short-term maturities for both base and peak contracts, namely day, week and weekend contracts, for a number of market areas has been well received by the market and has led to significant trading volumes.

In line with the approach to offer a harmonised product portfolio across all relevant European market areas, EEX plans to extend short-term maturities which include day, weekend and week contracts for further power markets, including Belgium, and with a focus on the Eastern and Central European market areas, including Poland, Romania and Slovenia. The Council welcomes this initiative as an important step to develop liquidity in EEX’s emerging markets. An expansion of short-term products would contribute to the further fostering of potential from cross-border trading (spreads).

The Exchange Council also discussed the gas zone merger in Germany. On 1st October 2021, the current market areas in Germany, Gaspool (GPL) and NetConnect Germany (NCG), will be merged into a new nationwide gas market Trading Hub Europe (THE). After a market consultation, EEX decided to enable the trading of “THE Futures” within the existing NCG order books. The Council welcomed this solution and the early announcement as this minimises the potential of a liquidity split in the German gas market and allows participants to adjust their trading and post trading systems and processes. The Council agreed to the decision and the adaption of the rules and regulations.

The Exchange Council of EEX is an official body of the exchange under the German Exchange Act. It consists of a total of 24 members who expertly represent the various relevant interest groups and business circles. In addition to the trading participants who are represented by 19 elected members from five different voting groups, four representatives from associations and one representative of energy science belong to the Exchange Council. The tasks of the Exchange Council include the formulation of the rules and regulations of the exchange and their amendments. The Exchange Council is also tasked with the supervision of the Management Board of the Exchange and the appointment of the Head of the Market Surveillance.