The European Energy Exchange (EEX) will launch Trade Registration services for products that are listed on its subsidiary Cleartrade Exchange (CLTX) in January 2015. As a first step, EEX will introduce futures on freight contracts.
"The cooperation with CLTX is an important part of our diversification strategy. By introducing freight contracts, we will offer our customers a new asset class that perfectly complements our existing clearing offering for coal. The launch expresses the development of EEX from an energy exchange towards a multi commodity exchange", says Peter Reitz, Chief Executive Officer of EEX.
Richard Baker, Chief Executive Officer, CLTX adds: “This collaboration creates a global commodities offering for the Asian and European marketplace. This launch is significant as we bring together a portfolio risk management solution for European power producers and coal producers who have long-term exposure to freight. Extending choice of clearing at the point of execution is at the heart of the CLTX business and the availability of freight contracts at EEX and ECC marks a first step in advancing our global partnership.”
Starting on 6 January 2015, EEX will offer eleven “dry bulk freight” contracts for Trade Registration. The future contracts enable market participants to hedge against volatile prices for freight rates, referring to the transport of commodities in different sizes and for different sea trade routes. All products are financially settled futures which will be listed in U.S. dollars and settled against recognized market indices. The indices will be made available by the London based Baltic Exchange.
Trade Registration on the regulated market EEX means that transactions in these products are concluded bilaterally and registered for clearing. The exchange transactions arising from this will then be cleared and settled by European Commodity Clearing (ECC). Those transactions are not classified as an OTC derivative under EMIR and will not be considered for the calculation of the EMIR clearing threshold.
In the framework of their cooperation, EEX plans to list further CLTX products for Trade Registration, including contracts on iron ore, fertilisers and additional coal contracts.
The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal and guarantees of origin are traded. Through its majority shareholding in Cleartrade Exchange (CLTX), EEX additionally offers the markets for freight, iron ore, fuel oil and fertilisers. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing (ECC). EEX is a member of Eurex Group.
Cleartrade Exchange (CLTX) is a regulated futures exchange for the global commodity derivatives marketplace. CLTX offers an electronic order book with a suite of over 40 different derivative contracts covering Energy, Freight, Metal and Agriculture. CLTX is a Recognised Market Operator (RMO) regulated by the Monetary Authority of Singapore (MAS). CLTX is incorporated in Singapore with offices in London.
Cleartrade Exchange, an EEX company, part of Deutsche Borse Group