EEX Physical Future´s Trading Starts On June 1st - Federal Department Of Finance Agrees To Sales Tax Treatment

The path is plain for the implementation of the new physical electricity future at the European Energy Exchange (EEX) in Leipzig. The Federal De-partment of Finance has agreed to the sales tax treatment of the new products. Thus, EEX on Wednesday, June 1st, starts physical future´s trading. These products are good for efficient treatment of electricity price risks and may offer protection against balanc-ing risks deriving from the new topic IAS 39 as they are settled directly by electricity de-livery and therefore can fall under the “own use exemption”.

“We reached final clarity for our participants concerning the sales tax treatment,” showed Exchange Managing Director Oliver Maibaum signs of joy. “By giving this dis-closure before trading starts, the Department has now created legal certainty.”

The EEX operates a Spot and a Derivatives Market for energy and energy-related products and, with 126 trading participants from 16 countries, it is the energy exchange in Continental Europe which boasts the highest number of participants and the biggest turnover. Besides electricity and electricity futures and options, since March 2005 also CO2 Emission Allowances are being traded. The range of services provided by EEX is complemented with related activities, such as the joint clearing of exchange transac-tions and over-the-counter transactions (OTC clearing).