Nasdaq to transfer European power business to EEX bourse (updated)

European Energy Exchange AG

20/06/2023 10:26

(Recasts paragraph 1, adds details in paragraph 3 and
background in paragraphs 4 and 5)
       June 20 (Reuters) - The European Energy Exchange (EEX)
 T3PA.DE  and Nasdaq  NDAQ.O  said on Tuesday they have reached
an agreement under which the U.S. exchange operator will
transfer its European power trading and clearing business to
EEX.
    The deal will involve the transfer of existing open
positions in Nasdaq's Nordic, French, and German power futures
as well as European carbon emission allowance futures (EUAs) to
EEX's clearing house European Commodity Clearing (ECC), EEX
said, without disclosing any financial details of the deal.
    EEX, a unit of Deutsche Boerse  DB1Gn.DE , said Sweden's
Nasdaq Clearing AB will not be a part of the sale. The operator
said it will update the Nordic power market structure, replacing
Electricity Price Area Differential (EPAD) contracts with zonal
futures contracts - a market model in many other European power
derivatives markets.
    Nordic EPAD futures contracts are financial instruments used
to cover the difference between individual zones and the system
price.
    The Nordic power market comprises 15 bidding zones, which
combine for a common benchmark system price, but also settle
individual prices for each area. 


 (Reporting by Baranjot Kaur in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;))