The European Energy Exchange (EEX), Saxo Bank and PZEM Energy have partnered to offer German Power CFDs (Contracts for Differences) on Saxo’s fully integrated trading and risk management platform, SaxoTraderGO.
Saxo’s new German Power CFD will be linked exclusively to prices established in EEX’s Phelix-DE orderbook and will cover both Phelix-DE Base and Peak Futures with monthly, quarterly and yearly expiries.
Through the cooperation with Saxo Bank and PZEM Energy (who will act as market maker for the German Power CFD’s on the Saxo platform), a new and broader range of potential trading participants will now have access to EEX’s flagship product – the Phelix-DE Future, which is the benchmark for trading power derivatives in Europe. Furthermore, the new German Power CFD will give private investors, small and mid-sized industrial clients and Saxo’s global institutional clients, direct access to the deep liquidity pool of EEX’s Phelix-DE Futures.
On the collaboration, Dr Tobias Paulun (pictured), EEX Chief Strategy Officer, says: “The new Saxo CFDs on German Power, which are directly linked to the EEX Phelix-DE orderbook, provide a new and innovative risk management tool for small and mid-sized firms who want to actively hedge energy price risks.”
Job Barth, Head of Saxo Bank in the Netherlands, says: “The addition of German power products on SaxoTraderGO, gives Saxo’s clients access to a liquid product at the most established power market in Europe. With Saxo, clients can hedge their energy exposure with low barriers to entry on the wholesale market.”
Frank Verhagen Chief Financial Officer at PZEM, adds: ‘Two years ago PZEM Energy and Saxo Bank entered into a partnership regarding Energy CFDs. PZEM Energy fulfils a market making role in Dutch Energy CFDs. The offered products are Dutch Power (Base & Peak) and TTF. PZEM Energy will act now also as market maker for German Power (Base & Peak).”
