EEX: OTC Clearing Service In France For The First Time With French Power Futures

With the introduction of the French Power Futures, the European Energy Exchange (EEX) does not only offer exchange trading in said French Power Futures to its trading participants but it also provides an OTC clearing service for over-the-counter futures transactions in France for the first time ever. In the context of this new OTC clearing service EEX co-operates with renowned brokers (GFI Group Inc., ICAP Energy AS, Prebon Marshall Yamane Limited, Spectron Group plc., TFS Tradition Financial Services GmbH) and thereby extends its co-operation, which is al-ready successful in the German market, to the French market.

“The French Power Future occupies a special position for us among the numerous product launches“, Albert Moser, Doctor of Engineering, Director of Business Devel-opment of the European energy exchange which is based in Leipzig, emphasises. “With this product, EEX does not only accomplish one further step towards a more European character, but, in addition to that, we connect the German and the French power markets in a joint clearing procedure for the first time. In this way, we can open up considerable savings potentials for our customers with regard to capital and liquidity in the framework of the so-called cross-margining procedure.“

In exchange trading of the new futures RWE Trading GmbH will act as a market maker and, hence, will provide basic liquidity. EEX is currently talking to further companies in-terested in market making. Moreover, information on the respective current market situation is also available in real time through the renowned information providers.

In the course of the first weeks, 14 trading participants have registered for trading as well as for the OTC clearing service. So far, 70 futures contracts with a total volume of 500,400 MWh have been traded.

EEX operates a Spot and a Derivatives Market for energy and energy-related products and, with 128 trading participants from 16 countries, it is the energy exchange in conti-nental Europe which boasts the highest number of trading participants and the biggest turnover. In addition to electricity and electricity futures, options on electricity are also traded and trading in CO2 emission allowances commenced in March 2005. The range of services provided by EEX is complemented with related services such as the joint clearing of exchange transactions and over-the-counter transactions (OTC clearing).