EEX gets new members as more over-the-counter trading comes on board

European Energy Exchange AG

12/02/2025 09:09

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      Clearing functions attract OTC business, says CEO
    

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      Green power expansion seen boosting demand for bourse
    

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      Southern Europe to see new EEX products in February
    

  
    By Vera Eckert
       ESSEN, Germany, Feb 12 (Reuters) - European energy
exchange EEX  DB1Gn.DE  expects strong volume growth in 2025 as
more market participants join to hedge renewables and tap into
the exchange's clearing functions, its chief executive said
during the E-World trade fair.
    The exchange recorded 37% year-on-year growth in volumes of
its flagship European power futures in January, which had grown
63% across 2024, CEO Peter Reitz said in an interview with
Reuters.
    "There are two drivers: new members and more
over-the-counter (OTC) market volumes shifting to the exchange,"
Reitz said.
    He said that the volatility of wind and solar electricity
production was creating short-term supply risks, and thus
hedging needs, also noting increasing digitisation resulting in
algorithmic trading.
    Some 60 companies joined the EEX in 2024 to make a total of
950.
    Reitz heads the 25-year-old wholesale trading platform which
contributes 10% to the turnover of its parent Deutsche Boerse
 DB1Gn.DE . He said EEX will widen its lead over the
over-the-counter business.
    "There is a move to the Deutsche Boerse  DB1Gn.DE  clearing
house, away from uncleared brokerage trades...I see the shift
continuing," Reitz said.
    The EEX increased its market share in German power futures
to 85% in 2024 on the exchange from 81% a year earlier, with the
remainder OTC, he said.
    Since the 2008 financial crisis, OTC customers have been
turning more to regulated marketplaces to comply with European
Union financial rules, reduce counterparty risks, and try to
save money on fees bundled across products and regions.
    EEX will offer new "Mon-Sun Peak Power Futures" in Spain
later this month to account for southern Europe's rising solar
generation, Reitz said.
    EEX overall electricity trading volumes rose 43% last year
to 12,371 terawatt hours (TWh). January volume was up 37% at
1,188 TWh.
    Asked for a volume forecast for 2025, Reitz declined,
pointing to hard-to-gauge geopolitical risks and varying energy
mixes.

 (Reporting by Vera Eckert, editing by Jane Merriman)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654))