European Energy Exchange

The European Energy Exchange (EEX ) is a marketplace for energy and related products. EEX (or the exchange itself ) subject as a public institution the German Stock Exchange Act. The institution of the Exchange, however, acts as a corporation under private law. EEX with over 240 trading participants from 24 countries currently the leading energy exchange in continental Europe. Electricity, natural gas, CO2 emission allowances, coal and origin for green electricity are traded on EEX. Furthermore, EEX offers the service of Trade Registration Servie, be registered with the OTC transactions for clearing to the stock market. EEX is located in the City high-rise on Augustus Square in Leipzig. Operator of the Exchange EEX EEX AG, based in Leipzig.

History

Originating EEX is from a fusion of LPX (Leipzig Power Exchange) and EEX (European Energy Exchange ), based in Frankfurt am Main in 2002.

EEX AG

EEX AG, headquartered in Leipzig, as well as offices in London and Brussels is the operating company of the Stock Exchange. It is majority owned by the Eurex Zurich AG ( 62.57 %). The remaining shares are in free float of particular various energy companies, banks and countries.

The European Energy Exchange AG has holdings in the following companies:

• EPEX SPOT SE ( 50%)
• EEX Power Derivatives GmbH (80 %)
• European Commodity Clearing AG ( 98.5 %)
• Storage Capacity Exchange GmbH (12%)
• Global Environmental Exchange GmbH (100 %)
• European Market Coupling Company GmbH (20%)
• Clear Trade Exchange Pte. (52%)
• EGEX European Gas Exchange GmbH (100 %)

EPEX Spot Market

The EEX spot market for electricity (EEX Power Spot ) was transferred in 2009 to the new company EPEX SPOT SE, headquartered in Paris. This is one of 50% of the French Powernext SA and EEX AG. On the spot market for Germany, France, Austria and Switzerland can be traded. Here, the spot market of short-term portfolio optimization system. EPEX SPOT offers the following trading models:

EEX Spot Market

EEX offers spot trading in natural gas in the German market areas GAS POOL (formerly GUD and BEB) and NCG ( NetConnect Germany, formerly EGT ), and since the end of May 2011, for delivery in the Dutch market area TTF ( Title Transfer Facility ). Since May 30, 2011 short-term trading is open around the clock with natural gas. On 24/7-Spotmarkt natural gas companies can trade continuously for the current day ( within-day ), one day and two days in advance, and for the following weekend ( day-ahead ).

On 29 May 2013, the German European Energy Exchange ( EEX) and the French Powernext have their Gasmärktezu connected to a Pan - European offer for gas products ( Pegas ). As part of Pegas trading participants, the gas products of both exchanges, act on a common trading platform, the Trayport ® Exchange Trading System. Members have access to all spot and futures market products that offer the two exchanges for the market areas Germany, France and the Netherlands via this common trading platform. In addition, spread products between these market areas on the platform are tradable.

Since 2005 can be traded on the EEX Spot Market CO2 allowances in the EU Emissions Trading Scheme (EU ETS). In addition to the secondary market, that is the trade of certificates that are already in the market, EEX operates since January 2010, also the primary market auctions of European emission allowances (EUAs ).

In addition to the Primärmarktautkionen EEX offers spot trading on EU emission allowances for the second and third EU ETS trading phase. In addition, it launched in 2012 the spot market for EU Aviation ( EUAA ). EUAA are special allowances that can be used by air carriers for compliance purposes. Since December 2012, the EEX also offers trading of Certified Emission Reductions (CER ) on the spot market.

In addition to the primary market auctions on behalf of the Federal Republic of Germany, EEX also leads on behalf of other countries (such as Lithuania, Netherlands, Hungary, Poland) by EUA auctions. In addition, the EEX operates as German transient auction platform for the third trading period. Furthermore, EEX Cooperation Forum acts as the European Investment Bank ( EIB) in the marketing within the NER300 program. In this case, the EIB can use the EEX auction platform and sell emission rights both directly via the secondary trading on EEX as also register on Trade Registration OTC transactions for clearing.

EEX Derivatives

In the EEX Derivatives transactions may be hedged up to six years into the future. The power exchange offers futures for the market area Germany / Austria and France on a weekly, monthly, quarterly and annual financial futures. The traded on the EEX power futures are financial settlement and futures, which can optionally be delivered physically on the electricity spot market. In addition, options are traded on German electricity futures. Physically settled trades are offered for the market areas in France, Belgium, the Netherlands and Italy in future also.

On the futures market participants to continue to trade futures on EU emission allowances ( EUA called futures) and futures on Certified Emission Reductions ( CER futures ). Looking at the third EU - ETS trading period, which began in 2013, EEX has launched four new emission Futures: On April 30, the derivatives with EU launched Aviation Allowances ( EUAA ). In parallel, began trading futures on Emission Reduction Units ( ERUs ).

EEX offers since July 2007, the trading of natural gas futures settled physically ( GAS POOL and market areas NCG ) to. The participants can trade month, quarter, season and year futures on natural gas.

Furthermore traded on the EEX Derivatives are guarantees of origin / Guarantees of Origin ( GOOS ). These are certificates that prove that one megawatt hour of electricity was generated from renewable energy sources. They are issued solely for identification and transparency purposes and canceled after use. They are traded on a trading day per week and can be traded in the future up to three years. All of origin have a validity of 12 months. The following GOOS can be traded on the EEX:

• Nordic Hydro Green electricity certificates from hydropower in the Nordic region (Denmark, Finland, Norway, Sweden)
• Alpine Hydro Green electricity certificates from hydropower in the Alpine region ( Germany, Austria, Switzerland )
• Central Northern European Wind: Certificates for wind power in Northern Europe (Belgium, Denmark, Germany and the Netherlands)

Trading volume

The trading volume on the EEX Power Derivatives amounted in 2013 to 1263.9 TWh ( terawatt hours ), 2012, there were 931.4 TWh. ( 339 TWh in 2012 ) traded on the spot markets for electricity EPEX SPOT 2013, a total of 346 TWh. Trading volumes in the natural gas market rose by 46 percent to 110 TWh ( 2012: 75.5 TWh). At the emission rights market total 850.3 million tonnes of CO2 were traded, compared to 254.6 million tonnes of CO2 per year in 2013.

Clearing and Settlement

All transactions are handled by the EEX clearing house European Commodity Clearing AG ( ECC ), which also provides clearing and settlement five other European exchanges. The ECC is a clearing house that specializes in the physical delivery of energy and energy-related products. EEX and ECC jointly offer the service of the Trade Registration. This service allows the trading participants to let OTC transactions for clearing to register the stock market.

Transparency

Since 2009, the EEX operates a transparency platform as a Web site, close to the market at a central and neutral location published on the relevant market production and consumption data in order to increase transparency in the wholesale market. This means that both statutory publication requirements and voluntary commitments by the industry to be implemented.

These data are from the four German transmission system operators 50 Hertz (Ex - Vattenfall ), reported Amprion (Ex - RWE), EnBW (Ex - TransnetBW ) and Tennet ( ex E.ON ) on the EEX. Since 2010, Austrian Power Grid reports data for Austria. Transmission system operators shall meet as their legal obligations under the EU guideline for congestion management after, and meet the requirements of Chapter 4.3 of the Report on Transparency for the Northern European region, the energy regulatory authorities in Germany, Scandinavia and Poland have developed 2007. Since early 2012, some energy companies use the platform to the fulfillment of disclosure requirements of REMIT.

Currently, six market areas in Germany, Austria and the Czech Republic will be covered. An implementation of Bulgaria and Switzerland is planned in the future.

EEX as operator of the platform takes in processing the data, in particular the following tasks:

• Plausibility
• Anonymisation and aggregation
• Publication