EEX and Powernext have confirmed the launch date of the additional trading venues (non-MTFs) for German and French power derivatives as well as gas derivatives for all hubs and maturities available today through the regulated platform, in response to on-going MiFID II legislation.
The new products will be available as of 1 July 2016.
The MiFID II legislation outlines a specific framework for power and gas contracts that must be physically settled and are traded on an “Organised Trading Facility” (OTF) which will be formalised in the course of 2016. Physically settled transactions concluded on an OTF are not considered as financial instruments under MiFID II. Today, these trading venues are known as “non-MTF” as the license for an OTF is not yet available, and contracts which can be physically settled according to MiFID 1 are not considered financial instruments.
EEX and Powernext therefore intend to provide their members with these new trading platforms. The new trading venues will be in addition to the existing regulated markets. All contracts will be cleared by European Commodity Clearing (ECC), thereby ensuring that trading is secure and anonymous. Once MiFID II comes into effect, EEX and Powernext will apply for an OTF license for this market segment.
These new products as operated by EEX and Powernext will continue to retain the high standards of transparency and supervision which customers have come to expect from the regulated exchange market. In particular, the new platforms will benefit those physical players who trade in financial instruments mainly for hedging purposes.
