In its meeting on 22 September 2006 the exchange council of European Energy Exchange AG (EEX) adopted a resolution regarding the introduction of intra-day trading at EEX. The decision was taken to launch spot trading within the market area of Switzerland in December 2006. The transparency campaign met with a positive response from the consumers’ representatives. The planned trading in gas was one further focus.
With the approval by the exchange council it will become possible for the trading participants on EEX to buy and sell electricity at very short notice in the framework of intra-day trading as of 25 September 2006. As in the case of all other trading activities on EEX, this marketplace is subject to state supervision and it is organized under public law. Security in physical delivery and the settlement of payments is also ensured in this market by the clearing subsidiary of EEX, European Commodity Clearing AG. The electronic platform for intra-day trading will be available for the market participants around the clock on seven days per week. Trading and settlement will be effected in all four German TSO zones. Moreover, there are plans to include further countries in the platform. All 132 trading participants already licensed to trade on the Spot Market of EEX are also cleared automatically for trading on the EEX intra-day power trading plat-form. Companies wishing to be licensed as new trading participants exclusively for intra-day trading on EEX only pay a reduced annual fee.
The resolution taken by the exchange council regarding the launch of spot trading in power for the grid area of the Swiss Etrans as of December 2006 sets the track for a further step by EEX within a European setting. Back in December 2005 a balance area agreement was concluded with the Swiss national transmission system operator, Etrans, and the simulation of physical delivery was carried out successfully.
The representatives of both private and industrial consumers (VIK and vzbv) expressly welcomed the EEX initiative for more transparency and recommend further measures and steps in this field.
In its meeting the exchange council voiced its express wish for gas trading to be introduced on EEX. Currently, a detailed analysis of the opportunities and risks entailed in this project is being carried out. A new dealer working group on the topic of gas will be established in mid-October in order to prepare the launch of this market.
The exchange council is a body of the exchange defined in the German stock ex-change act. It consists of in total 22 members that adequately represent the different interest groups and business communities: In addition to the trading participants with 18 members elected from various election groups (domestic as well as foreign transmission system operators – power trading companies, municipal utilities and regional sup-pliers, brokers and financial service providers as well as commercial consumers), four representatives of associations (BDI, VDEW, ViK and vzbv) are members of this body.
During the next meeting, the exchange council will elect an investors’ representative in addition. The exchange council primarily adopts the rules and regulations of the exchange as well as the amendments thereto. Moreover, the exchange council appoints and monitors the management board of the exchange and appoints the head of the Market Surveillance Office.
