In the framework of the Primary Market Auction for European Emission Allowances, which European Energy Exchange AG (EEX) is carrying out on behalf of the Federal Environment Ministry, the last Derivatives Market auction for the current year will take place on 27 October 2010 as scheduled. From 2 November 2010, the remaining weekly quantity of 870,000 EUA will be auctioned off on the Spot Market of the exchange each Tuesday.
Since January 2010, EEX has run auctioning for 10 percent of the emission allowances issued by Germany on the basis of a weekly cycle. So far, a volume of in total 35,670,000 EUA has been auctioned in 82 auctions on the Spot Market and the Derivatives Market with the auction process and the settlement of the emission allowances auctioned off proceeding smoothly and securely at all times.
“Trust is based on security and reliability. On the basis of secure and established systems and processes we have gained confidence by the market participants. The auctioning demonstrate the quality of our trading and settlement processes” says Dr. Hans-Bernd Menzel, CEO of EEX, and emphasises “This constitutes a good recommendation for the time after 2012.”
EEX is very pleased with the auction results: For example, the average oversubscription rate of the auction, which indicates the ratio of the quantity to be auctioned and the total of the buy bids, amounted to 5.4 (Spot and Derivatives Market). A total of 15 trading participants took part in the auctions on the Spot Market, while in total 22 trading participants took part in the auctions on the Derivatives Market. The Spot Market price ranged between EUR 12.46 per EUA and EUR 15.91 per EUA and the results on the Derivatives Market ranged between EUR 12.37 per EUA and EUR 16.04 per EUA. All auction results are documented in reports and publicly available on the EEX website: http://www.eex.com/de/Downloads/Marktdaten/Emissionsberechtigungen%20- %20EEX
Furthermore, auctions regarding 10 percent of the German emission allowances will be held by EEX for the year 2011 in accordance with the tried and tested principle. The first auction on the Spot Market will take place on 4 January 2011 and the first auction on the Derivatives Market will follow on 5 January 2011. European Energy Exchange AG (EEX) is the leading energy exchange in Europe and operates market platforms for trading in power, natural gas, CO2 emission rights and coal. To this end, EEX relies on an open business model which generates flexibility and market coverage and, thus, higher liquidity through targeted spin-offs and partnerships. Through this systematic expansion of co-operations, EEX makes a decisive contribution to the integration of the European energy markets. EEX Group also includes European Commodity Clearing AG (ECC), the central clearing house for energy and related products in Europe.
