EEX and Powernext to offer power derivatives and gas markets under one exchange license
The European Energy Exchange (EEX) intends to merge Powernext activities into EEX on 1 January 2020, subject to the required approvals.
Through the integration of Powernext into EEX, the exchange will offer all products at one single market place while simplifying the admissions of new participants. Members will be able to easily trade a larger EEX portfolio including natural gas, power and emission allowances.
As a result, customers will gain access to increased trading opportunities and a growing liquidity pool, while continuing to benefit from cross margining effects as ECC will remain the central counterparty for clearing transactions. At the same time, current Powernext clients will be able to continue trading the natural gas portfolio upon admittance to EEX. Powernext will be incorporated into EEX, becoming a Paris based centre of expertise, maintaining all stakeholder relations and know-how for natural gas markets and registry services.
Subject to required approvals, trading activities on the natural gas platform PEGAS will be organised by EEX in the future, which will make trading at EEX Group easier for customers. This constitutes a significant milestone for the development of the Global Commodity Exchange group with a strong European footprint.
“Over the past years, both our power and gas activities have been growing significantly in Europe. In line with EEX Group’s strategy to become the preferred global commodity exchange, we are confident that this step will answer our customers’ need to trade a wide range of products on one platform,” says Peter Reitz (pictured), Chief Executive Officer of EEX.
In early 2012, EEX and Powernext decided to extend their power market cooperation by uniting their efforts in the gas sector. In 2013, both companies launched the common gas trading platform PEGAS, whilst keeping the two underlying exchanges unchanged. As of January 2015, all natural gas products listed at EEX and Powernext have been listed on the PEGAS platform, under one single rulebook and membership which paved the way to significantly enhance liquidity in natural gas. After more than four successful years of Powernext within EEX Group, EEX and Powernext intend to integrate Powernext into EEX with the ambition of always making trading at EEX Group easier for customers.
“A set-up with only one market access will boost the cross-selling potential of the power and natural gas derivatives market, that’s why we collectively intend to merge those markets and to establish one rulebook and one admission process,” adds Dr Tobias Paulun, President of Powernext and Chief Strategy Officer of EEX.
The integration will make the gas markets accessible to global customers of the EEX Group while – via the Paris office – allowing EEX to keep its decentralised and local connection to members. State-of-the-art trading technology, stable processes and customer support in German, English and French languages will remain unchanged.