The European Energy Exchange (EEX) will spin off the Natural Gas Spot and Derivatives Market into a separate company owned to 100 per cent with the corporate name “EGEX European Gas Exchange”.
Five years after the launch of exchange gas trading in Germany, this step paves the way for cooperations in the field of natural gas trading.
In July 2007, EEX launched the Natural Gas Spot and Derivatives Markets in two German market areas. Since then, the offer in natural gas trading has been expanded continuously.
Today, trading participants can conclude trading transactions on the Spot Market for delivery in the German GASPOOL and NCG market areas and the Dutch TTF market area around the clock. Moreover, EEX has established a reference price in short-term trading with the daily reference price which is also used by the German market area operators to settle control energy with all gas shippers in accordance with requirements by the Federal Network Agency.
The volume traded on the Spot Market for Natural Gas more than doubled in the first five months of the current year. From January until May 2012, 15.8 TWh have been traded compared to 7.7 TWh in the same periode of the previous year. The liquid Spot Market forms the basis for the development of the Derivatives Market, on which traded volumes have risen by over 80 percent during the first five months in 2012. The significance of EEX prices in long-term natural gas trading is to be further supported by the gas price index
EGIX. This index is based on all exchange trades concluded in the respectively current front month contracts of the NCG and GASPOOL market areas on the Derivatives Market.
With 112 companies admitted to trading today, EEX has become the gas exchange in Europe with the highest number of trading participants within a period of five years. On the basis of new cooperations with partners that support the development of exchange trading on EEX, natural gas trading on the exchange is to be promoted both in the existing and in new market areas and the offer of trading products and market price information is to be extended to other European countries.
“We see great potential for cooperations with other exchanges and important players on the market also in the field of natural gas trading. The spin-off of the Spot and Derivatives Market to the new company facilitates the preconditions for a cooperation with other exchanges, trading platforms and market participants“, explains Peter Reitz (pictured), Chief Executive Officer of EEX.
The shareholders approved the spin-off of the gas markets at the general meeting which took place in Leipzig on 21 June. The Supervisory Board has also granted its approval so that, subject to the approval of the Exchange Supervisory Authority, the “EGEX European Gas Exchange” will commence operations with retroactive effect as of 1 January 2012.