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EEX markets to remain open despite German derivatives markets issues

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The European Energy Exchange’s (EEX) markets are to remain open despite the current situation on the German power derivatives market.

Market participants debated the price development over the past week and the significant price increase on Friday, 26 August when the power future for baseload delivery in the next year (the front year Cal 23), which is the benchmark contract for power in Europe was settled at a price of 985.00 Euro/MWh. The contract showed an intraday price upward movement of almost 200 Euro/MWh.

The Management Board of the Exchange confirmed that the prices were formed properly and that a temporary stop on the market would therefore not be necessary. The current market situation is constantly checked by the exchange. The Exchange Council agreed to this and gave a clear rejection to stop trading on the EEX.
The exchange emphasises that clearing and settlement of the exchange transactions is still ensured and that all margin claims of the clearing house have been serviced by the clearing members.
Nevertheless, the Exchange Council warned that the continued high liquidity requirements could also lead to further reluctance to trade, in particular on the sell side. Therefore, the members of the Exchange Council consider it very important that companies receive support in financing collateral (margins) not only from Germany as so far, but also from other member states or the EU.
Finally, the Exchange Council expressly supports the previous measures taken by EEX to provide trust and security in the current market situation and refers to the extensive FAQ document that EEX publishes to inform market participants.

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