Q&A: EEX
EEX Market Supervision
electricity market. EPEX SPOT is today Europe’s leading spot market power exchange and the facilitator for power market integration. This model can be replicated with other partners and commodities. The concept of partnership is also very important to us when it comes to clearing, as they contribute greatly to the overall results of the EEX Group. As it stands, ECC is already the clearing partner of choice for six exchanges and our aim is to team up with additional partners in the future.
GI: How has the development of your carbon auctioning platform progressed? PR: On the carbon market we have seen
GI: Can you elaborate further and tell us about the prospects for EEX natural gas trading and clearing in 2012? PR: We have made big efforts in 2011 to push our gas market and achieved promising results. The Gas Spot Market volume increased year-to-year by 54%, the Derivatives Market is 11% higher than in 2010. Within a few months we have established a high liquidity and a constantly growing number of trading participants in the Dutch TTF market area – reaching an exchange market share of 50%. However, exchange trading in natural gas is still in its infancy in Germany. In our domestic market we still have some way to go in OTC traded volumes. For a long time, long-term oil- based supply contracts were considered to be the
The concept of partnership is also very important to us when it comes to clearing
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standard solution. With our gas index EGIX we offer a transparent alternative which can replace oil price based indexes in supply contracts. Many companies have just begun to develop trading structures for gas. We see a huge potential in the gas market – both for Germany and for other markets. Today, EEX trading covers the GASPOOL, NCG and TTF market areas. Soon our range of services will be rounded off with the British NBP as a clearing product.
GI: EEX’s business expansion strategy has been underpinned through collaboration in trading and clearing. Will this strategy be maintained under the umbrella of Eurex? PR: Our goal for 2012 is to grow organically and through partnerships and cooperations. Together with our Paris-based partner Powernext, we have brought together the German and French
50 March 2012
mixed results. Driven by the primary market auctions, the Spot volume increased slightly while the volumes on the Derivatives market declined. The exciting time is coming within the next trading period - the third EU ETS period. A large proportion of the volumes will be running on the primary market auctions. In the course of the previous year EEX has performed a total of 92 auctions safely and smoothly. In 2011, the German Federal Ministry for the Environment extended the contract for the execution of primary market auctions in 2012. At a European level, we won the contract for the Dutch and the Lithuanian primary market auction for 2011 and 2012. These most recent successes testify to the capacity of EEX to provide the central platform for future auctions from 2013 onwards.
GI: What kind of growth potential do you expect for 2012 in the emissions sector? PR: In 2012 approximately 50% of all EUAs issued within the EU ETS will be auctioned. In terms of the EU, there will be four main auctions: three national auctions (with the exception of Germany, Poland and UK) and all other EU countries in one auction. EEX has a successful track record in regular and large-scale auctioning for different countries and soon, in cooperation with the European Investment Bank. The tenders for the other auctions are just emerging. Airlines are also key for next year. The EU ETS will be extended to other industries including the aviation industry. Lufthansa has already registered to the trading community of EEX and we will offer emission allowances for the aviation industry (EUAAs).
GI: How do you view the nascent traded European coal markets and what steps is EEX taking to develop this sector further in 2012? PR: Our coal trading is still a “niche market”.
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