Leipzig, 28 March 2024 – The European Energy Exchange (EEX) has launched its new zonal futures products for the Nordic power derivatives markets. To date, the first week has seen a total of 10 trades in the Swedish (SE3) and Danish (DK1) bidding zones, with a total traded volume of 32,811 MWh.
The very first trade on the first day of availability was concluded by Norlys Energy Trading and Uniper on the Swedish zone SE3.
"We are pleased to pioneer the first trade of the EEX Zonal Future, marking a milestone for us and for the Nordic energy sector. This financial instrument allows us to navigate the complexities of the Nordic electricity market with greater efficiency, reflecting the production characteristics of each country. By leveraging the EEX Zonal Future, we are not only enhancing our ability to hedge against price risks more effectively but also fostering a closer integration between the Nordic and Continental European electricity markets," says Morten Wethje Sondergaard, Manager Nordic Power at Norlys Energy Trading. Morten Erik Pettersen, Director Power Trading, Uniper adds: “It is important to understand that the Zonal Futures have a more efficient margin usage than the old SYS and EPAD setup we have had for many years. This is something that should be of uttermost importance for the incumbents in the market and cannot be communicated enough. A substantial reduction in initial margin should make clearing more attractive than ever before. This together with an already larger customer base and presenting a more transparent price picture for the different price areas should give a good basis for success.”
The new product offering includes financially-settled baseload futures for all 12 Danish, Finnish, Norwegian and Swedish bidding zones, in addition to extended tradable contracts in the existing Nordic Power Futures offering, settled against the Nordic System Price.
Steffen Koehler, COO of EEX, comments: “With our extended Nordic offering, we aim to provide a wider range of hedging opportunities for trading participants, addressing the diminishing liquidity on these markets. Our approach of zonal futures and locational spread trading has worked well on our other markets and we are confident that the Nordic trading community will also benefit from our broadened product portfolio. We are delighted with the initial results of the first week of trading.”
The new Nordic Zonal Futures are expected to enhance efficiency in terms of risk management, whilst widening the pool of market participants by offering location spread trading within the Nordics and to continental power markets, along with access to EEX’s pan-European network of power traders. In addition, daily settlement prices for all individual bidding zones will contribute to improved price transparency in the region.
Learn more about the EEX Nordic power offering on our website.
The European Energy Exchange (EEX) is a leading energy exchange which builds secure, successful and sustainable commodity markets worldwide – together with its customers. As part of EEX Group, a group of companies serving international commodity markets, it offers contracts on power, natural gas and emission allowances as well as freight and agricultural products. EEX also provides registry services as well as auctions for guarantees of origin, on behalf of the French State. More information: www.eex.com
Contact:
EEX Public Relations
T +49 341 2156-300
presse@eex.com | www.eex.com