Global Power Derivatives Newsletter | July 2022
Dear Customers, Partners and Friends,
In my last update at the end of 2021, I shared my hopes for a calmer 2022 but as we all know, it hasn’t quite worked out that way due to the ongoing conflict in Ukraine. In these times of crisis, where energy markets are experiencing unprecedented price developments, it is our responsibility to provide stable trading and clearing conditions. As a regulated exchange which operates wholesale energy markets, I truly believe it is our duty to ensure free price formation, as this provides essential data on the physical underlying of energy supply and demand. A robust and transparent price formation process, combined with sound policies to ensure an orderly market is essential under any market circumstances but especially so when markets are experiencing extreme volatility. Building this business in partnership with you is at the heart of everything we do – and not just in the “good times” but also during these days that we currently live in and I want you to know that together, we will get through this.
Naturally, when experiencing difficult times, it can be much harder to be optimistic about everyday life. However, some “green shoots” have emerged with the relaxation of certain travel restrictions and I know the team have really enjoyed getting back out “on the road” again to meet you in person. I must say, on a personal note, it was really wonderful to see so many of you at our Madrid reception and indeed at E-world last month and I’m really looking forward to meeting many more stakeholders in the coming months at our various events across Europe and Asia.
Speaking of Asia, in May we celebrated the 2nd anniversary of our entry into the Japanese Power Futures market. Thank you to everyone who got involved in our celebrations – I continue to be truly humbled (and of course, incredibly grateful) by the real sense of community that has developed in this market. Proof indeed of what can be achieved when we work together.
Until next time,
Max Mustermann
Steffen Köhler
On the road to a sustainable future
With the easing of travel restrictions, we are thrilled to be back out “on the road” again and of course to take part at E-world energy & water in Essen – the largest trade fair for the European energy trading community. On Day One, EEX Group hosted a panel discussion and various breakout sessions at the “Trading Forum”, which focused on how exchanges can contribute to a sustainable future.
As an Exchange, we’re convinced that decarbonisation is the answer to climate change and the energy price crisis and we see it as our duty to drive the decarbonisation of the energy sector with innovative products and services. However, what will an efficient market design and regulatory framework look like in the future and how can that help achieve a decarbonised yet efficient electricity system? This topic was discussed by Philippe Vassilopoulos from EPEX SPOT and EEX’s Tim Greenwood in the Power breakout session. To view Tim and Philippe's presentation, click here.
If you would like to know more on this topic, please feel free to contact Tim Greenwood or Philippe Vassilopoulos
Building Markets Together in Japan
On 18 May, we celebrated the second birthday of our offering for the Japanese Power market! To celebrate, we held our first EEX customer workshop and reception in Tokyo in more than two years. It was a great pleasure to finally meet Japanese market participants and stakeholders in person again, and to celebrate what we have achieved together. We were also honoured to welcome a host of high-level industry speakers to the event as well as representatives from the Ministry of Economy, Trade and Industry (METI) and a number of major Japanese utility players.
Whilst the first year of trading focused on building the market together with our clients, in year two, we entered a phase of sustained, organic growth which culminated in EEX reaching the 10TWh milestone last month! To all our stakeholders, both in Japan and around the world – THANK YOU – for your continued support.
To view our latest Power Profile on Japan featuring Bob Takai, Erlend Engelstad and Michael Mervyn-Jones – click here
Cześć Warszawa and Hola Madrid!
After a long stretch of no events due to Covid-19, we are so happy to be back out, meeting customers again and we must say that Warsaw and Madrid were worth the wait!
In May, EEX Group welcomed customers to the “Financial futures Trading and Beyond” workshop & reception, while last month we headed to Madrid where are customers heard from Steffen Köhler and the EEX’s Madrid Team, Alvaro Ruben Reyes Diaz, Flavia Garcia Travadela, Carlos Urro as well as Lucian Unger from EEX in Leipzig who spoke on the latest developments in the power, natural gas and emissions markets.
Next stops include London, Milan and Singapore – see you there!!
Five years of successful CSEE market development – next stop: Croatia
Did we mention ETCSEE already, the event for the Central and South-Eastern region? EEX Group representatives also attended this conference in Budapest last month and took the occasion to look back on five years of successful operations and development of CSEE power markets.
Five years ago, in June 2017, EEX extended power futures trading on its platform, by adding contracts for the Czech Republic, Slovakia, Hungary, Poland and Romania – products which were previously listed on the Prague-based Power Exchange Central Europe (PXE). This step became possible when our friends from PXE joined EEX Group, becoming the centre of competence for the CSEE markets within our Group. We’re happy to report that the power futures volume developed very positively: Within four years after the migration, volumes increased more than 9-fold to peak at 278 TWh in 2020. In 2021, volumes remained at a high level, with the Hungarian power market establishing itself as the main trading hub in the region.
In 2019, we added further market areas to our CSEE product portfolio by launching cash-settled power futures for the Bulgarian, Slovenian and Serbian markets. Looking ahead, EEX will cooperate with the CROATIAN POWER EXCHANGE (CROPEX) to also add power derivatives for the Croatian markets. The launch is planned for the first quarter of 2023 and we’re very much looking forward to the integration of this new market – stay tuned!
Download the press release here
Get ready for Touchpoint
Finally, we have some VERY exciting news to share…
In September, EEX Group will launch its new trade registration platform – Touchpoint. For the first time ever, Touchpoint will bring together all EEX asset classes in a single, intuitive and easy to use platform. The feature rich system provides a comprehensive range of trade registration and administration services and tools, allowing users to control all parts of the OTC trade workflow.
Touchpoint has been specifically designed to cater for a broad range of different users, enabling clearing members, brokers and clients to interact in a single platform: Brokers can book trades on behalf of clients and access live EEX market information, Clearing Members can set client limits and manage their accounts while clients can see all trades being entered on their behalf and access a range of data and analytics tools. In addition to its intuitive GUI, users can access the platform via a direct electronic connection allowing information to be transmitted live from Touchpoint into individual users systems.
If you’d like to know more on what Touchpoint can do for your business or to set up a system demo in advance of the launch, please feel free to reach out to Richard Heath
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