Eurex and EEX to expand cooperation to power derivatives

Eurex and EEX to expand cooperation to power derivatives

28/10/09

The European Energy Exchange (EEX) and the international derivatives exchange Eurex are expanding their cooperation. As of 25 November 2009, Eurex customers will also be able to trade and clear EEX power derivatives via their existing Eurex access. The new products in the cooperation comprise Phelix Baseload Futures and Options and Phelix Peakload Futures and Options.

“We are offering our core product – Phelix Futures – to a global network of new participants for trading and clearing in one big step”, said Dr. Hans-Bernd Menzel, CEO of EEX AG.

Peter Reitz, Eurex Executive Board member responsible both for product and market development and for cooperations, said: “The expansion of our cooperation with the EEX will enable our participants to engage in exchange trading of power derivatives for the first time. This step underlines our strategy of expanding into new asset classes and offering our participants access to existing liquidity pools. Thanks to their high level of existing liquidity, the Phelix power derivatives are a very attractive European benchmark product for our financial participants and perfectly complement perfectly our existing offering of emission rights contracts.”

Eurex participants will be able to trade power futures and options via a simplified admission process, as with the existing cooperation in trading emission rights. The clearing link between European Commodity Clearing AG (ECC) and Eurex Clearing AG means that Eurex participants can continue to use their existing clearing relationships.

EEX and Eurex already cooperate in emissions trading. Eurex participants have been able to trade EEX emissions products since December 2007. The cooperation currently comprises EUA futures, options on EUA futures and CER futures.