Yesterday, the European Energy Exchange (EEX) launched its new coal initiative and registered first trades for clearing via European Commodity Clearing (ECC). The first registered transaction for delivery in June 2014 was concluded between EnBW Energie Baden-Württemberg AG and STEAG GmbH and matched by the broker GFI Group. The volume comprised 5,000 tonnes traded at a price of USD 75.35 per tonne. The total volume registered amounted to 20,000 tonnes.
In the framework of this coal initiative, EEX focuses on Trade Registration. Bilaterally concluded contracts registered at the exchange for clearing are not classified as OTC derivatives and will therefore not taken into account for the calculation of the so-called “EMIR threshold for commodity OTC derivatives”.
“With the support of the brokers we are confident that our new coal offering meets the requirements of our customers. The basis for this is a simple trade registration process utilising ‘Straight Through Processing’ of trades to the clearing house”, says Steffen Köhler, Chief Operating Officer of EEX.
The coal re-launch is supported by four leading brokers offering the EEX coal products on their platforms. EEX’s coal offering includes financially settled month, quarter and year futures for Amsterdam-Rotterdam-Antwerp (ARA) and Richards Bay (RB), which refer to the API 2™* and API 4™* indices published jointly by Argus and IHS McCloskey. EEX contracts are listed in both US dollars and euros.
Furthermore, EEX offers an incentive scheme for the registration of volumes at the exchange. Within the scheme, a payment of EUR 10,000 will be paid out to the trading participant that registered the largest volume in the respective month. The scheme runs until the end of August. Furthermore, an exemption from fees will apply to the registration of coal transactions for clearing until the end of the year 2014.
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 AG (ECC). EEX is a member of Eurex Group.
*API 2 and API 4 are trademarks of and used under licence from Argus Media Limited and IHS Global Limited. All copyrights and database rights in the API 2 and API 4 indices belong exclusively to Argus Media Limited/IHS Global Limited. All rights reserved. Argus and IHS take no position on the purchase or sale of EEX’s financially settled listings.
