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In response to the impending split of the German/Austrian bidding zone, the European Energy Exchange (EEX) introduced the Phelix-DE product suite in April this year. While many regulatory details of the bidding zone split remain uncertain, the new Phelix-DE future, which has been widely welcomed by the market, is quickly establishing itself as the new benchmark product for German power,
Increasing confidence from market participants has resulted in a significant shift of liquidity from the old Phelix-DE/AT into the new Phelix-DE contract, particularly in contracts which cover maturities following the split of the original bidding zone, which is currently planned for 1st October 2018.
In the first half of August 2017 more than 40% of the volumes in the EEX German Power Cal19 Base have been either traded or cleared in the new Phelix-DE contract. While in the same period, over 75% of the volumes in the EEX German Power Cal20 Base have switched to the new Phelix-DE contract also.
“It’s very encouraging to see market confidence returning to the German power market. Since launch we have seen a very positive development in the Phelix-DE Future; (May‘17: 8.1. TWh, Jun‘17: 12.2 TWh, Jul‘17: 15.0 TWh). This development will bring security back into the market”, comments Steffen Koehler, Chief Operating Officer of EEX.
He continues, “2016 was a record year for EEX, and while we have seen lower volumes in the first half of this year, which is in line with overall shrinking wholesale market volumes across all European markets, it’s important to remember that 2017 is still our second best year in terms of volumes for EEX’s Power Derivatives business and for EEX German power in particular”.
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 commodity products. At EEX, contracts on Power, Coal and Emission Allowances as well as Freight and Agricultural Products are traded or registered for clearing. Alongside EEX, EPEX SPOT, Powernext, Cleartrade Exchange (CLTX), Gaspoint Nordic, Power Exchange Central Europe (PXE) and Nodal Exchange are also part of EEX Group. Clearing and settlement of trading transactions are provided by the clearing house European Commodity Clearing (ECC) and by Nodal Clear in the United States. EEX is part of Deutsche Börse Group. More information: www.eex.com
