These futures will enable the trading participants to hedge prices of emission allow-ances; in this context the EEX clearing house assumes the counterparty risk arising from the futures transactions concluded. In addition to that EEX also offers clearing of futures transactions concluded over the counter. In the framework of this so-called OTC clearing EEX cooperates with several renowned brokers and wishes to repeat the success achieved in OTC clearing of futures transactions in electricity.
“With the Derivatives Market for EU emission allowances we continue the systematic expansion of our products and can hence complete one further step in the implementa-tion of our European approach“, Dr. Hans-Bernd Menzel, chairman of the managing board of European Energy Exchange AG, points out. In this connection the head of the exchange points to the considerable synergies between power and emissions trading for the exchange. “The integration of the trading and clearing systems which has been completed over the last years allows us to introduce new products such as trading in emission allowances speedily and at low costs today. We can now pass on these ad-vantages to our customers in the form of sustainably low transaction fees“, the chair-man of the managing board of EEX describes his approach.
EEX already introduced a Spot Market for emission allowances in March of this year. After a muted start the EEX Spot Market for emission allowances has shown a good development throughout the first six months of trading. By the end of September a total of roughly 1.35 million items of emission allowances were traded. “This trend continues without any abatement“, Mr. Menzel adds with regard to this welcome development.
EEX operates a Spot and a Derivatives Market for energy and energy-related prod-ucts and, with 128 trading participants from 16 countries, it is the energy exchange in continental Europe which boasts the highest number of trading participants and the biggest turnover. In addition to electricity and electricity futures options on electricity are also traded and trading in CO2 emission allowances commenced in March 2005. The range of services provided by EEX is complemented with related services such as the joint clearing of exchange transactions and over-the-counter transactions (OTC clearing).
