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In May, the European Energy Exchange (EEX) will start an initiative to relaunch its coal market. The initiative will focus on Trade Registration which means the registration of OTC trades for clearing.
EEX has attracted several well-known brokers that support the Trade Registration offer. As of 21 May 2014, GFI Securities Limited, Spectron Energy Services Ltd. part of Marex Spectron Group, Tradition Dubai Limited and Tullett Prebon (Europe) will offer the EEX coal products on their platforms. From this day onwards, an exemption from fees will apply to the registration of these transactions on EEX for clearing via European Commodity Clearing (ECC) until the end of the year 2014.
"The coal market is a very interesting market for us and an essential component of energy trading. We are now working hard to establish it at the EEX", said Peter Reitz, Chief Executive Officer of EEX. "We have seen rising interest in our Trade Registration services, also against the background of the EMIR regulation. All contracts that are concluded bilaterally and registered at EEX for clearing will not be taken into account for the calculation of the EMIR threshold for commodity OTC derivatives. Furthermore, by the addition of coal trade registration, participants can save money by benefitting from the associated netting and cross-margining effects.”
EEX and ECC facilitate Straight Through Processing (STP) via the Trayport® Hosted Clearing Link and EFETnet eXRP. Derivatives transactions are registered at EEX according to its rules and regulations and subsequently cleared by ECC. Furthermore, by offering the new category of "Non Trading Broker", EEX gives brokers the possibility to enter trades into the exchange system on behalf of trading participants for registration without opening and holding own positions. This reduces risk and cost substantially for Non Trading Brokers which do not need a Clearing membership. EEX’s coal offering includes financially settled monthly, quarterly 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 U.S. dollars and euros.
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.
