www.eex-group.com
16.09.2016
EEX Power Derivatives
Milan Workshop – Terrazza Martini
14th September 2016
Agenda
1. EEX overview
2. Italian Power Futures
3. Trends and liquidity
4. Recent and upcoming initiatives
© 2016
| 2 |
Agenda
1. EEX overview
2. Italian Power Futures
3. Trends and liquidity
4. Recent and upcoming initiatives
© 2016
| 3 |
EEX Group at a glance
© 2016
| 4 |
New member of EEX Group
Power Exchange Central Europe (PXE)
 Since 2013, Prague-based Power Exchange Central Europe (PXE) has been a
Background
partner exchange of ECC.
 In January 2016, EEX acquired a majority stake in Prague-based Power Exchange
Central Europe (PXE).
 PXE offers cash-settled Power Futures for Czech Republic, Slovakia, Hungary,
Product Scope
Poland and Romania. Physically-settled futures are available for Czech Republic,
Slovakia and Hungary.
 Contracts with Baseload and Peakload profile and following maturities are
available for trading:
 6 consecutive months
 4 consecutive quarters
 3 consecutive years
 EEX and PXE are currently working on a roll-out plan to make PXE’s power
Next Steps
derivatives products available to EEX’s trading participants.
 Detailed information on timelines and technical implications will be published to the
trading and clearing community in due course.
© 2016
| 5 |
Market Coverage
Power Derivatives
© 2016
| 6 |
Agenda
1. EEX overview
2. Italian Power Futures
3. Trends and liquidity
4. Recent and upcoming initiatives
© 2016
| 7 |
Italian Power Futures - Volumes
Total volumes 2015: 396 TWh
Total volumes 2016 (Jan to Aug): 313 TWh
© 2016
| 8 |
Italian Power Futures - Market structure
747 TWh
813 TWh
462 TWh
The calculation of EEX’s market share is based on the figures
published by the exchanges and the London Brokers’
Association (LEBA) every month.
© 2016
| 9 |
EEX Trading Participants
Overall: over 100
•
79 companies trading as direct EEX member (NCM)
•
More than 20 companies trading through a bank with DMA (direct market access)
•
9 clearing banks
•
Active per month: more than 70
© 2016
| 10 |
Italian EEX Trading Participants: 40
•
30 companies trading as direct EEX member (NCM)
1. A2A Trading
16. Energetic Source
2. Alperia Energy
17. Eni Trading & Shipping
3. Axpo Italia
18. Enoi
4. Banca Akros
19. ERG Power Generation
5. Burgo Energia
20. Europe Energy
6. CVA Trading
21. Gala
7. Dolomiti Energia Trading
22. GDF Suez Trading Italia
8. Duferco Energia
23. Green Network Trading
9. Ecoway
24. Green Trade
10. Edelweiss Energia
25. Illumia Trend
11. Edison SpA
26. Repower Italia
12. Edison Trading
27. Sorgenia Trading
13. Electrade
28. TEI Energy
14. Enel Trade
29. Utilitá
15. Ener Trading
30. Youtrade
•
10 companies trading through a bank with DMA (direct market access)
•
5 companies currently in admission process
40
© 2016
| 11 |
Italian Power Futures
Market makers: 5
• Axpo Italia
• Edison Trading
• EDF Trading
• Enoi SpA
• Sorgenia Trading S.p.A.
© 2016
| 12 |
Agenda
1. EEX overview
2. Italian Power Futures
3. Trends and liquidity
4. Recent and upcoming initiatives
© 2016
| 13 |
EEX Power Futures (1)
Germany:
5,635 TWh
4,002 TWh
France:
1,232 TWh
781 TWh
© 2016
| 14 |
EEX Power Futures (2)
Spain:
174 TWh
141 TWh
Switzerland:
Total market size
n/a
EEX volumes
(Jan – Dec 2015)
3.1 TWh
EEX volumes
(Jan – Aug 2016)
8.2 TWh
EEX share in cleared market
100%

42 active members

35 active traders in 2016

Development of volumes in Italy and France to
support Swiss power market

June 16th 2016: launch of Swiss weeks

Q4 2016: launch of Swiss days
© 2016
| 15 |
Power Futures: days / weekends
© 2016
| 16 |
Other EEX Power Derivatives Markets
Product
EEX Volume
Jan 2016 – Aug 2016
EEX Volume
Jan 2015 – Aug 2015
Dutch Power Futures
2,7 TWh
n/a (launched in Jul 2015)
Nordic Power Futures
0.54 TWh
0,06 TWh
Belgian Power Futures
0.08 TWh
-
UK Power Futures
0.06 TWh
n/a (launched in Nov 2015)
Greek Power Futures
0.33 TWh
0.16 TWh
Romanian Power Futures
-
-
Product
EEX Volume
Jan 2016 – Aug 2016
EEX Volume
Jan 2015 – Aug 2015
German Intraday Cap Future
0.005 TWh
n/a (launched in Sep 2015)
© 2016
| 17 |
EEX Options on Power Futures
German Power
(Phelix) Options
Volume Jan 2016 – Aug 2016
120 TWh
Volume Jan 2015 – Aug 2015
35 TWh
Number of traded contracts for Phelix Options (Exchange + TR)
Number of contracts
4000
Months
3500
Quarters
Years
3000
2500
2000
1500
1000
500
0
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
2015
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
Volumes of new Power Options (launched in Q3/2015)
Product
Volume (Jan 2016 – Aug 2016)
French Power Options
10.2 TWh
Italian Power Options
1.4 TWh
Spanish Power Options
1.9 TWh
© 2016
| 18 |
Agenda
1. EEX overview
2. Italian Power Futures
3. Trends and liquidity
4. Recent and upcoming initiatives
© 2016
| 19 |
Recent initiatives
Automatic Physical Fulfillment
of German / French Power
Futures via EPEX
Base Weeks
CH, NL, Nordic
Peak Days
Italy, France
EEX non-MTF platform
© 2016
| 20 |
Automated physical fulfilment
Process in place:

EEX / EPEX offer a physical fulfillment for French and Phelix Power Futures via the EPEX spot auction

Member is required to fill out a bidding form and provide this to EPEX for each single fulfilment
New process:

Automatic completion of the bidding form with the netted position (long – short) by EEX Tool and
distribution to EPEX Spot

EPEX Spot uploads the bidding form in the EPEX Spot Auction System and the trader is informed via
email regarding the upload

Trader checks and confirms uploaded bids in EPEX Spot Auction System

Contracts are concluded between EEX and Member for physical fulfillment, EEX arranges for the transfer
of futures position to EPEX Spot

Market areas: Germany, France

Maturity: weeks, months
© 2016
| 21 |
Non-MTF products

A non MTF-solution must execute clients orders discretionarily

The non-MTF is a separate platform that is not operated under the regulated market license. Under MiFID
II, this platform shall become an OTF (available from 2018 onwards)

To avoid splitting liquidity, we bundle liquidity of the regulated market and the non-MTF. Best limits and
settlement prices on both markets coincide. The EEX Link GmbH is the connecting link between the two
markets.

The non-MTF products and the exchange-traded products share the same settlement prices. Margin
requirements in non-MTF products and the respective existing exchange-traded products will be netted
(100% off-setting)
© 2016
| 22 |
Physical fulfilment of non-MTF products

The non-MTF products are currently available for the market areas of Germany and France (M, Q,
Y – base and peak)

Similar to the physical fulfillment option already established for the existing EEX financial power
futures, the EEX non-MTF power futures can be fulfilled via the established market order service
offered by EPEX in cooperation with EPD.

However, the physical fulfillment via EPEX market order is not a fulfillment procedure within the
framework of a non-MTF product, which ‘can be physically settled’, therefore a double sided
fulfillment option exists for both the market participant and ECC.
© 2016
| 23 |
Upcoming initiatives
© 2016
| 24 |
www.eex-group.com
Thank you.
© 2016