About EEX Group
EEX Group is a group of specialised companies providing market platforms for energy and commodity products across the globe.
Brexit: EEX Group – providing certainty in uncertain times
Since the referendum took place in 2016, EEX Group has taken all necessary measures to prepare for Brexit and to ensure its clients will have frictionless access to its products and services whatever the outcome. In receiving ROIE status in February 2019, EEX is able to having UK members after Brexit, regardless of the eventual scenario. Our clearing house European Commodity Clearing (ECC) has been included by the Bank of England in the temporary recognition regime (TRR) for CCPs (valid from 1 January 2021 until 31 December 2023), as well as in the temporary designation regime (TDR) for system operators which will apply from the end of the transition period in the case that no trade treaty is agreed.
For certain products and markets, UK-based NCMs need to carefully evaluate their case in order to continue trading. EEX Group encourages its members to undertake the necessary actions to ensure business continuity.
Above all, EEX Group is committed to providing certainty in these uncertain times and ensures that its customers experience a transparent and thorough roadmap through the Brexit process, guaranteeing 100% compliance with EU rules applicable to trading and clearing (EMIR, MiFID, MiFIR, etc.).
On 31 January 2020, the United Kingdom left the European Union (EU) and is considered a third country. The UK left under the terms of the Withdrawal Agreement, which both sides agreed and ratified.
In order to give all stakeholders time to adapt to the new circumstances, a transitional phase started on 1 February 2020, which was agreed under the Withdrawal Agreement and will last at least until 31 December 2020.
During this period, the United Kingdom remains part of the EU single market and the EU customs union. In addition, during this transition period, all treaties, rules and obligations continue to apply to the UK. However, the United Kingdom has no longer a say in decisions at EU level, as it is no longer represented in the EU institutions.
During the transition period, the EU and the UK aim to agree the foundations for their future partnership in an agreement. The outcome of the negotiations is not foreseeable yet and the available timeframe for negotiations is tight.
Therefore, financial and energy market participants are still faced with uncertainty, until the terms of the future relationship have been finally determined. When the United Kingdom leaves the single market at the end of the transitional period, it will lose, among others, the EU passport, which allows cross-border financial transactions.
Position of EEX Group
We believe that regulators and market participants should take the necessary measures to prevent possible negative Brexit implications.
From EEX Group’s perspective, however, it is also important that the EU remains internationally competitive and at the same time ensures financial stability.
We support our customers as a strong partner.
EEX Group monitors and analyses the Brexit process very closely. In addition, we discuss the potential effects of the trade agreement with our customers and participate in discussions with industry associations.
For EEX Group, it is of utmost interest that our UK-based clients continue to have access to our infrastructure. Therefore, our business units along our value chain are taking the appropriate measures.
At the same time, we provide support to our clients who plan to relocate their business to the EU during the negotiation phase. We have established a dedicated Brexit Transition Team to ensure member readiness. Following our efforts we can ensure to offer our trading and clearing services in the United Kingdom as EEX obtained a respective license as Recognised Overseas Investment Exchange. Furthermore, ECC is benefiting from the temporary recognition regime by the Bank of England having submitted its application as a recognised clearing house.
The members of EPEX SPOT will continue to have access to all our European power markets. These markets are concerned by possible changes to the cross-border trading arrangements. We will prepare the EPEX Spot markets in line with the latest UK government advice and in close cooperation with our trading members. We will continue to engage with the UK government, EU authorities and regulators to minimise the impact on our markets.
If you have any questions, please don’t hesitate to contact your respective Key Account Manager.