EEX to launch Wood Pellet Futures
The European Energy Exchange (EEX) is to introduce futures on wood pellets, which will be available for Trade Registration as of 19 September 2017.
The offering includes financially-settled future contracts on industrial wood pellets. The product will be a monthly future which can be traded up to 36 consecutive months with a contract size of 100 metric tonnes. For the settlement EEX uses the Argus Wood Pellets cif ARA index as published in "Argus Biomass Markets".
Wood pellets are used for energy production and are a substitute product for coal. With this new product, EEX is expanding its portfolio of energy-related, globally traded commodities. Wood pellet futures, to be offered in cooperation with brokers, enable the EEX trading participants to hedge their price risks and to transfer trades into exchange clearing, thus contributing to transparency in this market.
The European Energy Exchange (EEX) is the leading energy exchange in Europe which develops, operates and connects secure, liquid and transparent markets for energy and related products. As part of EEX Group, a group of companies serving international commodity markets, EEX offers contracts on Power, Emission Allowances and Coal as well as Freight and Agricultural Products. EEX is part of Deutsche Börse Group.