EEX exchange introduces Croatian power futures

The European Energy Exchange strengthened its product line in the region of Central and Eastern and Southeastern Europe by rolling out Croatian power futures.

The European Energy Exchange (EEX) today launched the EGSI Natural Gas Index for NBP, several new power and natural gas products and the extension of expiries for selected power, natural and freight derivatives markets. The company, controlled by Deutsche Börse Group, explained its move by pointing to “the return of confidence on power derivatives markets” and persistently high gas trading volumes.

EEX now covers 21 European markets with power futures

While EEX has been present in Central and Eastern and Southeastern Europe for some time, Croatia is a completely new market and the new product offering shall complement the existing product line in this region, the announcement reads. The exchange operator introduced the EEX-PXE Croatian base and peak futures with weekly, monthly, quarterly and annual contracts.

EEX expands in Swiss, Japanese electricity markets

PXE is EEX’s subsidiary Power Exchange Central Europe. Croatian power futures increased the number of European markets with such products to 21, the exchange said.

EEX expanded its portfolio also with Swiss power futures for peak hours and short-term maturities for the Japanese power markets. In addition, it said monthly maturities for French and Japanese power futures would be extended. For natural gas trading, longer expiries will be applied to the TTF, THE, CEGH, and PEG markets. Furthermore, EEX will add expiry extensions on the freight market.

The company added the United Kingdom’s fast-developing NBP natural gas market to its EGSI benchmarks.

Futures enable investors to hedge against price exposure

The rollout of Croatian power futures was arranged in coordination with the Croatian Power Exchange (CROPEX). The derivatives will allow market participants to hedge against price exposure and provide investors with a clear price signal for planning, the two companies said earlier.

Elsewhere in the region, EEX has already issued futures for some countries. The first trades in Slovenian and Bulgarian power futures were registered on June 14, 2019, while the first transaction in Serbian futures took place a few days later.

Two years earlier, in June 2017, EEX expanded its portfolio with financial derivatives for the markets of the Czech Republic, Slovakia, Hungary, Poland, and Romania.