The European Energy Exchange (EEX) is to start an initiative to relaunch its coal market.
The initiative will focus on Trade Registration which means the registration of OTC trades for clearing.
EEX has attracted several well-known brokers that support the Trade Registration offer.
As of 21 May 2014, GFI Securities Limited, Spectron Energy Services Ltd (part of Marex Spectron Group), Tradition Dubai Limited and Tullett Prebon (Europe) will offer the EEX coal products on their platforms. From this day onwards, an exemption from fees will apply to the registration of these transactions on EEX for clearing via European Commodity Clearing (ECC) until the end of the year 2014.
"The coal market is a very interesting market for us and an essential component of energy trading. We are now working hard to establish it at the EEX," says Peter Reitz, chief executive officer of EEX. "We have seen rising interest in our Trade Registration services, also against the background of the EMIR regulation. All contracts that are concluded bilaterally and registered at EEX for clearing will not be taken into account for the calculation of the EMIR threshold for commodity OTC derivatives. Furthermore, by the addition of coal trade registration, participants can save money by benefitting from the associated netting and cross-margining effects.”
EEX and ECC facilitate Straight Through Processing (STP) via the Trayport Hosted Clearing Link and EFETnet eXRP. Derivatives transactions are registered at EEX according to its rules and regulations and subsequently cleared by ECC. Furthermore, by offering the new category of "Non Trading Broker", EEX gives brokers the possibility to enter trades into the exchange system on behalf of trading participants for registration without opening and holding own positions. This reduces risk and cost substantially for Non Trading Brokers which do not need a clearing membership.