In an effort to increase its future power trading volumes, the chief executive of the European energy exchange, EEX, said on Tuesday that the exchange has opened a new tab and anticipates the launch of new electricity forward products in the Nordic region on March 25.
In order to launch a new wholesale trading sector ahead of the rest of Europe, EEX, the largest power and gas exchange in Europe, is working to improve trading alternatives for power in Norway, Sweden, Finland, and Denmark, where energy was deregulated in the 1990s.
What Did Reitz Say about New Electricity Forward Products
CEO Peter Reitz stated in an interview at the E-World trade show that the Nordic region required to be in line with trade standards and procedures that are typical in 20 other European power derivatives markets where EEX is operating. This move is a component of the exchange’s international expansion into markets throughout the world, including those in Japan and the United States, in addition to Europe.
“We are in preparations with our customers to start what is called the zonal futures for the Scandinavian market next month,” Reitz stated. “The contracts are a better representation of different generation mixes and the expansion of renewable energies in the region,” he stated.
New Opportunities With Other European Power
In addition to looking for cross-border spread opportunities with other European power markets and with other commodities, traders will be able to take advantage of spread trading within the zones, according to Reitz.
To facilitate the transition, EEX is extending the available expiries for the current EEX Nordic Power Futures by an additional 10 years. 60% of the EEX’s total power volume is traded in Europe, where 5,185 terawatt hours (TWh) of power were exchanged last year.
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