"With the derivatives market, we're implementing in record time our concept of integrated spot and futures trading that we presented less than one year ago," the two Executive Board members Christian Geyer and Hans E. Schweickardt said. "Due to the continuing liberalization of the energy sector and the establishment of exchange-based market places, the energy sector will become one of the central trading markets in Europe, in addition to the financial market," was the EEX board members' forecast. The EEX derivatives market will make an important contribution towards achieving this goal.
Derivatives trading will further expand the circle of EEX participants because derivatives trading is also attractive for companies outside of the energy sector. With the broad support of banks and financial service providers, EEX also wants to enable access to derivatives trading for participants who are not EEX members. "So, we are especially targeting smaller participants who participate in trading via their bank," as EEX put it. Numerous banks will offer clearing services and customer trading for the derivatives market from the very beginning.
The EEX derivatives market enables risk hedging through trading with futures. EEX will start out with two futures based on the electricity indices for base-load and peak-load blocks on the EEX spot market. The contracts have terms of up to 18 months. Trading will be conducted via the integrated Eurex trading and clearing system, which is also used by Eurex, the world's Number One derivatives exchange. EEX offers participants fair and transparent trading, with an open order book and the highest standards of security and protection.
