EEX to introduce Bulgarian, Slovenian, Serbia power futures on June 3

On June 3, the European Energy Exchange (EEX) will expand its product range on the derivatives market with new power futures for the Bulgaria, Slovenia and Serbia market areas, EEX said on its website.

Clearing and settlement of the new products will be carried out by European Commodity Clearing (ECC).

The listing of the new power futures extends the pan-European offering of EEX to the emerging power markets in Central and South Eastern Europe, thereby extending its range to 20 market areas throughout Europe, EEX said.

The product offering will include cash-settled power futures for Slovenia covering base and peak load products with weekly, monthly, quarterly and yearly expiries. Furthermore, cash-settled Bulgarian and Serbian base load products with the same expiries will be launched.

“The introduction of these new products reflects the development of EEX as part of a global commodity exchange group,” says Tobias Paulun, Chief Strategy Officer of EEX.

Last year in June EEX and Slovenian BSP Southpool announced power futures. Back then Tobias Paulun 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.

According to BSP Southpool data, total trading volume for 2018 reached nearly 7.8 TWh, with an increase by 9.2% on the day-ahead market compared to 2017. Intraday trading volume amounted 331 GWh.

Bulgarian power futures were announced in December 2018.

Konstantin Konstantinov, Executive Director of IBEX, then said that cooperation with EEX will bring to the Bulgarian market the so important and necessary reference price signals for the long term products.

After the announcement of the Serbian power futures, in June 2018, Miloš Mladenović, Managing Director of SEEPEX, said that the listing of these derivatives 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.