Digital Assets Report


Like this article?

Sign up to our free newsletter

EEX to launch Futures Style Margin Options on power, gas and emissions futures

Related Topics

The European Energy Exchange (EEX) will expand its product range on the derivatives market with new Futures Style Margin Options for EEX power, gas and emissions futures.EEX has been successfully offering Equity Style Margin Options for several of its products for many years and will now add Futures Style Margin Options to its product portfolio. On 7 December 2020, EEX will introduce the new options on the emissions market and support the offering with a fee holiday. The options on power and natural gas futures will be available as of 15 February 2021. All Future Style Margin Options will be available for order book trading and trade registration.

Futures Style Margin Options are a more liquidity-preserving options product as the up-front premium payment will be broken down into daily margin payments, similar to futures products, and the remaining premium will be finally paid at expiration. This makes it easier for portfolio and risk managers to evaluate their daily exposure.

Steffen Koehler, Chief Operating Officer of EEX, says: “With the offering of the new options, we are able to provide our customers with not only a more liquidity-preserving options product but also with an option product whose payment structure is more aligned with our futures products and enables our customers to trade our wide range of products more efficiently.”

The clearing for the Futures Style Margin Options will be provided by European Commodity Clearing (ECC), the clearing house of EEX.

Like this article? Sign up to our free newsletter

Most Popular

Further Reading