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The supervisory board of the German European Energy Exchange AG (EEX) has laid the foundation for a big pan-European energy exchange. With its approval of the integration of the Power Spot and Derivatives Markets of EEX and Powernext into independent companies the supervisory board is taking the efforts for a Europeanization of energy trading on the exchange into account. The resolution also includes the further pursuit of the letter of intent regarding a co-operation concluded with the Belgian energy exchange Belpex.
While the Spot Market Company will be based in Paris, the Derivatives Market Company will be based in Leipzig. The settlement of all products from the Spot and Derivatives Market, which is referred to as clearing, will be provided by European Commodity Clearing AG (ECC) in Leipzig.
Furthermore, the Supervisory Board has unanimously decided that a proposal will be prepared with regard to the question of how the co-operation with Eurex AG, Nord Pool Spot AS and Nord Pool ASA can be expanded comprehensively in the fields of the Spot and Derivatives Market. A memorandum of understanding for such a comprehensive co-operation on the Spot Market, which can constitute the basis for the conclusion of a contract, has already been developed.
EEX operates Spot and Derivatives Markets for energy products. With 187 trading participants from 20 countries it is the energy exchange in continental Europe which boasts the biggest number of trading participants and the highest turnover. While coal is only quoted on the Derivatives Market, power, natural gas and EU emission allowances are traded both short-term on the Spot Market and long-term on the Derivatives Market with a time horizon of up to six years into the future. Clearing of exchange and over-the-counter transactions (OTC clearing) is provided by European Commodity Clearing AG (ECC). ECC is the clearing house of EEX and a subsidiary of the exchange.
