EEX, SEEPEX to launch Serbian power derivatives market
The European Energy Exchange (EEX) and the South East European Power Exchange (SEEPEX), have entered into a cooperation for the listing of cash-settled power futures, SEEPEX said in a press release, adding that both exchanges envisage the launch of the new contracts in early 2019.
“Pending the approval of the relevant authorities, EEX will list Base Months, Quarters and Year Futures for the Serbian market area. The products will be settled against the Serbian day-ahead spot price as calculated by SEEPEX,” SEEPEX statement reads.
According to SEEPEX’ press release, all market participants will benefit from the standard product setup which enables them to use Serbian Power Futures as a tool to hedge against price risks in the local power spot market.
Miloš Mladenović, Managing Director of SEEPEX, said that the listing of Serbian power futures at EEX will contribute to further develop liquidity and confidence in the Serbian power spot market, which is developing rapidly to become the main hub for cross-border trading in the SEE region. According to Mladenović, this will place SEEPEX as a relevant role model for all other neighboring power exchange initiatives.
“This step follows our strategy of establishing a Pan-European offering for power trading, also with a focus on the emerging power business in the Eastern and Southeastern European markets,” Tobias Paulun, Chief Strategy Officer of EEX, said.