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On 2 September 2013, the European Energy Exchange (EEX) will launch trading in Belgian and Dutch futures which are settled physically with the delivery of power.
As a leading trading platform in Europe, with more than 160 participants in the power market, EEX provides a broad base of participants. By launching Dutch and Belgian Power Futures, EEX will expand its product range with further European contracts in addition to the existing Phelix and French Futures. The new contracts enable market participants to hedge against price changes in the Belgian and Dutch power markets directly on EEX.
As an additional incentive, the exchange will introduce an initiator/aggressor fee scheme for trading of the new futures. In this context, the initiator is defined as the trad- ing participant who initiates the transaction with a buy or sell bid in the order book, whereas the aggressor is defined as the counterparty responding to this offer. If a trade is successfully concluded on EEX, the initiator of a trade does not pay transaction fees for trading and financial settlement. Furthermore, he receives a credit of EUR 0.005 per MWh, in addition. Only the aggressor has to pay the transaction fees as usual.
“This model provides an extremely high incentive for placing bids in the order book”, explains Chief Operating Officer (COO) Steffen Köhler. “Thereby, we offer our partici- pants an attractive order book and create high liquidity in the new products.”
Clearing and settlement of the products will be provided via the European Commodity Clearing (ECC). As a result, traders can use the tried and tested processes of the clearing house and benefit from the advantages of cross-margining on ECC.
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. 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.
