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The European Energy Exchange (EEX) and the Slovenian power spot exchange BSP Southpool have entered into a cooperation to further strengthen the Slovenian power market. In the framework of the cooperation, EEX will list cash-settled, Euro-denominated futures contracts on its pan-European power derivatives platform. The new Slovenian power futures will be settled against the SIPX spot market index as calculated by BSP Southpool. The launch of the new contracts is planned for the first quarter of 2019.
Dr Tobias Paulun, Chief Strategy Officer of EEX, comments: “Slovenia has become a liquid hub for cross-border trading with Italy and Hungary. Therefore, the new products perfectly supplement our existing offering for European power and will bridge the gap between those markets.”
Anže Predovnik, CEO of BSP Southpool, comments: “Trading volumes on the Slovenian spot market of BSP Southpool have increased considerably in the past 12 months, reaching a monthly record of 0.8 TWh in March 2018. The listing of power futures at EEX is a natural step to support this growth trend and to open up the Slovenian power market for additional trading participants.”
All market participants will benefit from the standard product setup which enables them to use Slovenian Power Futures as a tool to hedge against price risks in the local power spot market, benefitting from high-level standards both in terms of derivatives trading and clearing services.
The cooperation will further strengthen the development of the Eastern and Southeastern European power markets. In mid-June 2017, EEX integrated the PXE products for Czech Republic, Hungary, Poland, Slovakia and Romania onto its platform. Since then, interest in these products has increased continuously with more than 70 TWh traded in these markets between June 2017 and May 2018. Furthermore, EEX recently announced a cooperation with SEEPEX to launch power futures for the Serbian market.
