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Michael Redanz, EWE Trading

EEX Exchange Council reaffirms opposition to ACER decision


The EEX Exchange Council remains convinced that a split of the German-Austrian bidding zone, following recent announcements by the German Federal Network Agency and ACER, would be a step backwards for the market, as it would negatively affect liquidity in Europe’s power derivatives market.

The EEX Exchange Council remains convinced that a split of the German-Austrian bidding zone, following recent announcements by the German Federal Network Agency and ACER, would be a step backwards for the market, as it would negatively affect liquidity in Europe’s power derivatives market.
 
In addition, such a decision would go against the very idea of European integration, as its end result would be smaller rather than larger markets.
 
At its fourth and final meeting of 2016 in Vienna on 9 December, which was chaired by Dr Michael Redanz, managing director of EWE Trading, the Exchange Council agreed that an appropriate transition period of at least three years is required to safeguard market liquidity especially for the Phelix futures.
 
In addition, it considers the chosen date – 3 July 2018 – particularly difficult as this would affect the full range of maturities in Phelix futures.
 
The council also sees the decision by the Federal Network Agency as pre-empting the official, on-going bidding zone review process, which results it will have to respect. However, the council welcomes the announcement by Bundesnetzagentur to hold an official workshop on the process in December in which exchanges will take part as well. The Exchange Council has long called for such a workshop to promote greater involvement of the market in the decision-making process.
 
The Exchange Council also approved the introduction of day and weekend futures for the Swiss market area. EEX has gradually extended its product offering in the Swiss power derivatives market since 2013. Starting from trade registration-only contracts with monthly, quarterly and yearly expiries, EEX went on to launch an exchange order book in 2015 followed by weekly futures in 2016. As a result of these positive developments and in response to customer feedback, particularly those who are active in Italian power, the Exchange Council agreed to introduce day and weekend base futures for the Swiss market area, to be launched in spring 2017.
 
The Exchange Council of EEX is an official body of the exchange under the German Exchange Act. It consists of a total of 24 members who expertly represent the various relevant interest groups and business circles. In addition to the trading participants who are represented by 19 elected members from five different voting groups, four representatives from associations and one representative of energy science belong to the Exchange Council. 
In addition, such a decision would go against the very idea of European integration, as its end result would be smaller rather than larger markets.
 
At its fourth and final meeting of 2016 in Vienna on 9 December, which was chaired by Dr Michael Redanz (pictured), managing director of EWE Trading, the Exchange Council agreed that an appropriate transition period of at least three years is required to safeguard market liquidity especially for the Phelix futures.
 
In addition, it considers the chosen date – 3 July 2018 – particularly difficult as this would affect the full range of maturities in Phelix futures.
 
The council also sees the decision by the Federal Network Agency as pre-empting the official, on-going bidding zone review process, which results it will have to respect. However, the council welcomes the announcement by Bundesnetzagentur to hold an official workshop on the process in December in which exchanges will take part as well. The Exchange Council has long called for such a workshop to promote greater involvement of the market in the decision-making process.
 
The Exchange Council also approved the introduction of day and weekend futures for the Swiss market area. EEX has gradually extended its product offering in the Swiss power derivatives market since 2013. Starting from trade registration-only contracts with monthly, quarterly and yearly expiries, EEX went on to launch an exchange order book in 2015 followed by weekly futures in 2016. As a result of these positive developments and in response to customer feedback, particularly those who are active in Italian power, the Exchange Council agreed to introduce day and weekend base futures for the Swiss market area, to be launched in spring 2017.
 
The Exchange Council of EEX is an official body of the exchange under the German Exchange Act. It consists of a total of 24 members who expertly represent the various relevant interest groups and business circles. In addition to the trading participants who are represented by 19 elected members from five different voting groups, four representatives from associations and one representative of energy science belong to the Exchange Council. 

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