Leipzig, Paris 27 October 2017 . With the entry into force of MiFID II on 3rd January 2018, EEX and Powernext will transfer their Non-MTF offering for power and natural gas into Organised Trading Facilities (OTFs). The implementation is subject to approval by the respective competent authorities. The existing regulated markets of the exchanges remain unchanged.
“Like the existing Non-MTF markets operated by EEX and Powernext, the new OTF offering will provide a solution for market participants wanting to trade power and gas contracts with the characteristics ‘can’ or ‘must be physically settled’ on a discretionary trading venue, while preserving the high level of transparency and supervision which are currently in place for the regulated markets of EEX Group”, comments Dr. Tobias Paulun , Chief Strategy Officer of EEX. “The OTF markets enable participants who wish to fulfil their positions physically to trade without fulfilling requirements that had been originally designed for finanancial markets.”
Within the transition, all current Non-MTF products will become OTF products. EEX and Powernext will list financial as well as non-financial instruments on the OTF markets. Products on the OTF which “can be physically settled” will be classified as financial insturments while products which “must be physically settled” will be classified as non-financial instruments according to MiFID II, the latter being exempt from certain obligations of MiFID II and other financial regulation.
The European Energy Exchange (EEX) is the leading energy exchange in Europe which develops, operates and connects secure, liquid and transparent markets for energy and related products. As part of EEX Group, a group of companies serving international commodity markets, EEX offers contracts on Power, Emission Allowances and Coal as well as Freight and Agricultural Products. EEX is part of Deutsche Börse Group.
Established in 2001, Powernext is a regulated market under French legislation. Powernext is heardquartered in Paris and active across Europe. As a market facilitator Powernext develops tailor-made solutions for energy markets. As part of EEX Group, a group of companies serving international commodity markets, Powernext operates the Pan-European gas platform PEGAS, as well as the registry for Guarantees of Origins and the registry for Capacity Certificates for RTE. Powernext will start operating the White Certificates registry in France in 2018. Other services include balancing solutions and algorithmic trading solutions for TSOs.