EEX markets to remain open as power prices soar - statement

European Energy Exchange AG

29/08/2022 15:55

FRANKFURT, Aug 29 (Reuters) - The European Energy Exchange
 DB1Gn.DE  said on Monday the bourse would remain open in its
transparent price-setting role following significant power price
volatility since the end of last week.
    Concerns that Russia will further curb gas flows to Europe,
technical and weather-related issues at French nuclear plants,
as well as drought hitting coal deliveries have played havoc
with European wholesale power. EL/DE  NG/EU 
    German baseload, a benchmark contract for European
electricity futures for annual delivery in 2023  DEBYF3 , on the
exchange was 20.8% down from an intraday high of 1,050 euros a
megawatt hour (MWh) at 775 euros/MWh at 1420 GMT.
    That high was 6.6% above Friday's already exorbitant close
while the latest price is 11 times what it was a year ago and is
mirrored in the equivalent contract in the wider OTC
market. TRDEBYZ3 
    EEX said in a note that it kept constantly checking the
current market situation. Its council that represents market
participants met on Monday and decided against a trading halt.
    "Stopping exchange trading would lead to a shift in trading,
but it would not change the price development and would even
cause more uncertainty overall," said Chief Operating Officer
Steffen Koehler.
    The EEX, part of Deutsche Boerse  DB1Gn.DE , stressed that
clearing and settlement of exchange transactions remained
ensured and that all margin claims of the clearing house have
been serviced by the clearing members.
    However, it warned that high liquidity requirements
resulting from sky-high prices, could lead to a reluctance on
the side of sellers. Operators must place trade margins with the
EEX clearing house, ECC.  urn:newsml:reuters.com:*:nL5N2W23VY
    Therefore, it was important that companies receive support
in financing their collateral from Germany as well as other
member states of the European Union, the EEX said.
    The EEX offered a link to a recent Q+A document on a
potential futures market suspension.
    https://www.eex.com/fileadmin/EEX/Downloads/FAQ_Downloads/20220817_FAQ_EEX_market_suspension.pdf

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