The European Energy Exchange (EEX) will list Slovenian cash-settled, Euro-denominated futures contracts on its pan-European power derivatives platform, the Slovenian Energy Exchange (BSP Southpool) said in a statement, adding that the new power futures will be settled against the SIPX spot market index as calculated by BSP Southpool.
The launch of the new contracts is planned for the first quarter of 2019.
Tobias Paulun, Chief Strategy Officer of EEX, said that Slovenia has become a liquid hub for cross-border trading with Italy and Hungary, and therefore, the new products will bridge the gap between those markets.
Trading volumes on the Slovenian spot market of BSP Southpool have increased considerably in the past 12 months, reaching a monthly record of 0.8 TWh in March 2018.
The listing of power futures at EEX is a natural step to support this growth trend and to open up the Slovenian power market for additional trading participants, Anze Predovnik, CEO of BSP Southpool said.
In June 2017, EEX integrated the Power Exchange Central Europe (PXE) products for the Czech Republic, Hungary, Poland, Slovakia and Romania onto its platform. Since then, interest in these products has increased continuously with more than 70 TWh traded in these markets between June 2017 and May 2018.
Two weeks ago, EEX and the South East European Power Exchange (SEEPEX) also entered into a cooperation for the listing of cash-settled power futures.