During its first meeting in its new composition, the council paved the way for the further expansion of EEX in Europe and gave the go-ahead for the introduction of a spot market for the grid area of Switzerland. “Our trading participants’ high degree of interest in exchange trading within the Swiss grid area has set a clear signal for us to go advance the introduction of the new market area”, Jacques Piasko, the chairman of the exchange council, explains. EEX concluded a balance agreement with the Swiss national transmission system operator Etrans in December 2005 and has successfully completed the simulation of physical delivery.
Moreover, the EEX exchange council adopted a resolution regarding the introduction of the so-called gross bidding. Under this procedure the trading participants with both retail and generation portfolios have the possibility of concluding trading transactions on separate buy and sell accounts. This new service will be available for the trading participants of the exchange within the hourly auction.
During its meeting the exchange council gained an overview of the publication of market-relevant data on the different European energy exchanges. By means of a comparison of a total of nine trading markets the exchange council was able to ascertain that EEX is among the energy exchanges in Europe with the highest degree of transparency.
In addition, the exchange council expressly welcomed the preparations by EEX regarding the launch of gas trading on the exchange.
In its current composition the exchange council consists of 18 elected members. Compared with the previous term of office, the groups of the foreign transmission system operators and power trading companies as well as of the banks and financial institutions are represented with one additional representative each. The group of the energy brokers now has a seat on the exchange council for the first time. In addition to the Federation of Industrial Energy Consumers and Self-producers (VIK), represented by Dr. Peter Sentker, and the German Electricity Association (VDEW), represented by Dr. Bernhard Walter, the Federation of German Industries (BDI) and the Federation of German Consumer Organisations (vzbv) will delegate one representative each to the council for the first time during the current term of office. Prof. Dr. Edda Müller will represent vzbv on the exchange council. The increase from 17 to 23 members, which was made possible by an amendment of the election regulations, takes the growth of the exchange and the changed structure of the trading participants into account.
EEX operates a Spot and a Derivatives Market for power and CO2 emission allowances. With currently 147 trading participants from 19 countries, it is the energy exchange in continental Europe which boasts the largest number of trading participants and the highest turnover. The range of services provided by EEX is complemented by related services such as the integrated clearing of exchange transactions and over-the-counter transactions (OTC clearing). On 2 May 2006 EEX was the first exchange in Europe to launch OTC clearing of coal contracts and trading of coal futures.
