The European Energy Exchange AG (EEX) will expand its product portfolio and offer clearing for bilaterally concluded transactions on the National Balancing Point (NBP) from 29 February 2012.
As of this date, EEX participants can register UK NBP forward transactions conducted off exchange at EEX for clearing and nomination purposes. Clearing of OTC transactions is provided by European Commodity Clearing AG (ECC), which also assumes full settlement of the transactions including physical fulfilment.
Trading participants that are already admitted on the EEX Derivatives Market for Natural Gas can use this new offer once they have registered for it at ECC.
Peter Reitz, Chief Executive Officer of EEX AG, comments: “Trading on EEX already covers the German GASPOOL and NCG market areas as well as the Dutch TTF area today. Our range of products will become even more international and supplemented with a clearing product for the biggest European gas hub. Due to the new margin calculation at ECC, participants can also generate significant savings here on account of cross-margining effects.
For the financial evaluation of the positions in NBP futures contracts settlement prices will be used according to the standards common on the NBP gas market. These are provided by the London Energy Brokers’ Association (LEBA).
Alex McDonald, CEO of LEBA, comments: “LEBA has always been fully supportive of all clearing initiatives in order to enhance both access and integrity to all market participants. We are, therefore, happy to work with EEX to offer competitive clearing for Europe’s biggest gas market. The new OTC clearing service for NBP gas provides market participants with greater choice and, therefore, increases clearing competition in this established market area. LEBA will provide end-of-day settlement prices that are reflective of true OTC market conditions.”
An additional opportunity to use this new clearing offer at EEX is the registration of transactions via brokers. Daniel Simpson, Director Energy, Tullett Prebon Energy, comments: "Tullett Prebon is happy to offer its customers the new EEX/ECC NBP cleared contract. We see this as a competitively priced alternative to existing clearing solutions and as such are happy to add it to our suite of products to allow customers to fully take advantage of benefits it may offer them in terms of cross margining."
The European Energy Exchange (EEX) is the leading European energy exchange. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances and coal are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC).
