European Energy Exchange
|European Energy Exchange AG
|management||Peter Reitz ( Chief Executive Officer ),
( Chief Operating Officer ),
( Chief Strategy Officer ),
Jens Rick ( Chief Information Officer )
|Number of employees||681 (2019)|
|sales||304 million euros (2019)|
|Branch||Exchanges , energy|
The European Energy Exchange ( EEX ) is a marketplace for energy and energy-related products and is part of the EEX Group. As a public institution, EEX (or the exchange itself) is subject to the German Stock Exchange Act . The sponsor of the stock exchange, on the other hand, acts as a stock corporation under private law. EEX is part of the EEX Group, which connects over 600 trading participants worldwide. Be on the EEX electricity , natural gas , CO 2 emission rights emission allowances traded freight products, metals and agricultural products. In addition, EEX offers the Trade Registration Service, in which off-exchange transactions are registered for clearing on the exchange. EEX is located in the city high-rise on Augustusplatz in Leipzig . The operating company of the EEX exchange is EEX AG, based in Leipzig.
EEX emerged from a merger of LPX (Leipzig Power Exchange) and EEX (European Energy Exchange) based in Frankfurt am Main in 2002. In 2006, EEX spun off the clearing business into European Commodity Clearing (ECC). EPEX SPOT was founded in 2008. In 2014 EEX acquired a majority stake in the Cleartrade Exchange. In 2015, EEX took over Powernext in Paris - gas markets are operated by Powernext under the PEGAS brand. In addition, EEX indirectly acquired a majority stake in EPEX SPOT and thus holds a 50% stake in the Danish gas exchange GasPoint Nordic. In 2016, EEX took over the Czech Power Exchange Central Europe (PXE) and the CLTX commodity futures exchange in Singapore. In 2017, the company entered the North American market with the takeover of the Nodal Exchange. By restructuring the branches of its wholly owned subsidiary CLTX, EEX strengthened its business in Asia. EEX Asia, the trading name of Cleartrade Exchange Pte Ltd., has been the Asian mainstay of the EEX Group since November 2018, offering futures contracts on freight rates and commodities carried by sea. Today EEX is part of a group of companies (EEX Group) that enters into international partnerships and significantly shapes European energy trading.
EEX AG, headquartered in Leipzig, is the operating company of the stock exchange. The majority of EEX AG is held by Deutsche Börse Group. The remaining shares are in the free float of various energy companies, banks and countries in particular.
The European Energy Exchange AG holds shares in the following companies:
- EEX Asia, Cleartech (trade name of Cleartrade Exchange Pte Ltd.) (100%)
- EEX CEGH Gas Exchange Services GmbH (51%)
- EEX Link GmbH (100%)
- enermarket GmbH (40%)
- EPEX SPOT SE (51%)
- European Commodity Clearing AG (100%)
- Grexel Systems ltd (100%)
- KB Tech Ltd. (100%)
- Nodal Exchange Holdings, LLC (100%)
- Power Exchange Central Europe as (66.67%)
- Spark Pte. Ltd. (25%)
EPEX spot market
The EEX spot market for electricity (EEX Power Spot) was transferred to the new company EPEX SPOT SE based in Paris in 2009 . This is owned 50% each by the French Powernext SAS (a 100% EEX subsidiary) and EEX AG. Power for Germany, France, Austria and Switzerland can be traded on the spot market. The spot market is used for short-term portfolio optimization. EPEX SPOT offers the following trading models:
Intraday trading in electricity
In intraday trading on EPEX, power contracts are traded with delivery on the same or the following day. Exchange participants buy additional amounts of electricity or sell excess amounts due to increased demand. In this way, it is possible to take into account deviations from consumption forecasts at short notice and to avoid schedule deviations.
The electricity for the next day is traded on the day-ahead market. At EPEX SPOT there are three hourly auctions a day for three market areas: Germany / Austria, France and Switzerland. The bids of the hourly auction enable the simultaneous placement of different buying and selling quantities at different prices in the auction. The amount exported is then based on the determined auction price.
EEX spot market
EEX offers spot trading for natural gas in the German market areas GASPOOL (formerly GUD and BEB) and NCG (Net Connect Germany, formerly EGT) and, since the end of May 2011, also for delivery to the Dutch market area TTF (Title Transfer Facility). Since May 30, 2011, short-term natural gas trading has been open around the clock. On the 24/7 spot market, companies can trade natural gas continuously for the current day (within day), one day and two days in advance and for the following weekend (day ahead).
On May 29, 2013, the German European Energy Exchange (EEX) and the French Powernext combined their gas markets into a pan-European offer for gas products (PEGAS). As part of PEGAS, trading participants can trade the gas products of both exchanges on a common trading platform, the Trayport® Exchange Trading System. Via this joint trading platform, members have access to all spot and derivatives market products that the two exchanges offer for the market areas Germany, France and the Netherlands. In addition, spread products between these market areas can also be traded on the platform.
Since 2005, CO 2 certificates can be traded on the EEX spot market within the framework of the European emissions trading system (EU ETS). In addition to the secondary market, i.e. the trading of certificates that are already on the market, EEX has been conducting primary market auctions for European emission allowances (EUA) since January 2010.
In addition to the primary market auctions, EEX offers spot trading for EU emission allowances for the second and third EU ETS trading phase. In addition, she started the EU Aviation Spot Market (EUAA) in 2012. EUAA are special emission allowances that can only be used by aviation companies for compliance purposes. Since December 2012, EEX has also been offering trading in Certified Emission Reductions (CER) on the spot market.
In addition to the primary market auctions on behalf of the Federal Republic of Germany, EEX also conducts EUA auctions on behalf of other countries (e.g. Lithuania, the Netherlands, Hungary, Poland). In addition, EEX acts as a German transitory auction platform for the third emissions trading phase. EEX also acts as a cooperation exchange for the European Investment Bank (EIB) in marketing within the framework of the NER300 program. Here, the EIB can use EEX as an auction platform and sell emission rights directly via the secondary trading of EEX as well as register off-exchange transactions for clearing via Trade Registration.
EEX derivatives market
In the EEX Derivatives Market, trades can be hedged for up to six years into the future. The energy exchange offers futures for 20 market areas across Europe on weekly, monthly, quarterly and annual futures . The power futures traded on EEX are financially settled forward transactions that can optionally also be delivered physically via the power spot market. In addition, options traded on German electricity futures. Physically fulfilled trades are offered for the market areas of France, Belgium, the Netherlands and in the future also Italy.
On the futures market, market participants can continue to trade futures on EU emission allowances (so-called EUA futures) and futures on certified emission reductions (CER futures). With a view to the third EU ETS trading period, which began in 2013, EEX has started four new emission futures: On April 30, the derivatives market started with EU Aviation Allowances (EUAA).
The trading volume on the EEX Derivatives Market for Power amounted to 5,830 TWh (terawatt hours) in 2019, and 4,386 TWh in 2018. In 2019, a total of 589 TWh (2018: 577 TWh) were traded on the spot markets for electricity of EPEX SPOT. The trading volume in the natural gas market was 2,542 TWh (2018: 1,963 TWh). A total of 1,139 million tonnes of CO were traded on the emission rights market in 2019, compared to 2,897 million tonnes of CO in the previous year. On the agricultural market, EEX was able to achieve a total volume of 57,125 contracts (2018: 60,251 contracts). In the Global Commodities division, the freight market increased by + 109% (2019: 74,776 contracts, 2018: 35,850 contracts).
Clearing and settlement
All EEX transactions are processed by the European Commodity Clearing AG (ECC) clearing house, which also provides clearing and settlement for 9 other European exchanges. ECC is a clearing house that specializes in the physical delivery of energy and energy-related products. EEX and ECC jointly offer the trade registration service. This service enables trading participants to register OTC transactions for clearing on the exchange.
EEX has been operating a transparency platform since 2009, on which market-relevant data is published at a central and neutral point close to the market in order to further increase transparency on the wholesale market. This means that statutory publication obligations ( REMIT 1227/2011, Transparency Ordinance 543/2017, MAR 596/2014) of the industry are implemented.
Market participants are obliged to publish inside information effectively and in a timely manner in relation to the company or investments.
The information disclosed includes information about the capacity and use of facilities for the generation and storage, consumption or transmission / transmission of electricity or natural gas or information relating to the capacity and use of liquefied gas facilities, including planned or unplanned unavailability of these systems. ”EEX provides market participants with a standardized web service and a free transmission and reporting tool for transmission to the EEX transparency platform.
With the new online tool, EEX offers all market participants an opportunity to meet these regulatory obligations for the publication and forwarding of insider information relating to the company. Business insider information is published on the EEX transparency platform and automatically forwarded to regulatory authorities .
Furthermore, Article 9 provides for the registration of every company as a market participant that is active in the wholesale of electricity, natural gas and LNG . As part of the registration process, the market participant must designate a place where he can publish his inside information effectively and in good time. This applies to both companies with physical facilities and those without. EEX is one of the recommended and listed platforms for insider information at the Agency for the Cooperation of Energy Regulators (ACER).
In addition, EEX is an accepted data provider for forwarding data to ENTSO-E (Transparency Regulation 543/2013).
Six market areas are currently covered in Germany, Austria, the Czech Republic, Belgium, Hungary, Great Britain, Italy and the Netherlands.
The EEX transparency platform collects, publishes and transmits fundamental data and insider information about countries, commodities and the value chain in order to meet various regulations on behalf of market participants. Various measures protect the data from manipulation and validation checks support the reporting companies in achieving the highest possible data quality.
The EEX transparency platform offers customers an "all-in-one" solution for regulatory reporting with publication on the EEX transparency platform website, automatic data forwarding to authorities such as ACER, ENTSO-E and national regulatory authorities as well as data distribution to relevant media.
- EEX Supervisory Board appoints Jens Rick to the Management Board. EEX press release. In: eex.com. December 12, 2018, accessed February 5, 2019 .
- part of the eex group. In: eex.com. Retrieved November 22, 2018 .
- ( page no longer available , search in web archives: trade surveillance is regulated by public law (page 47) )
- ( page no longer available , search in web archives )
- EEX Group starts EEX Asia. In: eex.com. November 1, 2018, accessed November 22, 2018 .
- EEX AG / About / Participations. In: eex.com. Retrieved November 22, 2018 .
- Company's own presentation on EPEX.com , last accessed on January 7, 2011
- ( Page no longer available , search in web archives: press release of May 31, 2011 )
- ( Page no longer available , search in web archives: EEX wins bid for auction of CO2 certificates, notification dated November 18, 2009. )
- Violetta Kuhn, dpa: One electricity please: How energy trading works on the stock exchange. heise online, September 11, 2017, accessed on September 11, 2017 .
- , accessed on August 4, 2017
- Transparency data. In: eex.com. Retrieved August 4, 2017 .
- REMIT PORTAL: List of Inside Information Platforms , accessed on August 4, 2017
- , accessed August 4, 2017
- Transparency in Energy Markets - Germany , accessed on August 4, 2017