The European Energy Exchange (EEX) will expand its offer of standardised energy and related products with oil products. Together with its clearing house, European Commodity Clearing (ECC), EEX is planning to introduce a Trade Registration Service for futures on the Brent 901 formula on 8 September 2014.
In this context, the Argus Brent 901 Index*, converted to Euro per MWh, will form the underlying settlement price for the new future. This index is a delayed nine-month average of Argus prices assessments for North Sea Crude. The index is published daily by the energy and commodity information service provider Argus Media. The methodology used to calculate the Argus Brent 901 Index can be found at the Argus websitehttp://www.argusmedia.com/Methodology-and-Reference under Argus European Natural Gas.
The Brent 901 formula is widely used in pricing long-term gas supply contracts, in particular, for pricing on the Italian energy market.
“With a cleared derivatives contract on the Brent 901 formula, we will offer our trading participants an innovative risk management tool for complex oil formulas. This enables our participants to easily hedge against oil price and currency risks and to eliminate counterparty risks at the same time”, explains Peter Reitz, CEO of EEX.
The new products will comprise financially settled month, quarter and year futures which are registered on the exchange and subsequently cleared by the clearing house, European Commodity Clearing (ECC).
Peter Reitz adds: “With this step, EEX reinforces its position on the Italian energy market and, at the same time, supports its further development. The introduction of a clearing service for derivatives transactions, which have exclusively been traded bilaterally so far is one measure to increase market transparency. "
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, CO2emission 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 AG (ECC). EEX is a member of Eurex Group.
*ARGUS, the ARGUS Logo, ARGUS EUROPEAN NATURAL GAS and ARGUS BRENT 901 INDEX are trademarks of Argus Media Limited and are used under licence. All copyrights and database rights in the Argus European Natural Gas report and the Argus Brent 901 index belong exclusively to Argus Media Limited. Argus takes no position on the purchase and sale of exchange contracts and accept no liability in connection with any use of Argus data.
