The European Energy Exchange (EEX) and SEEPEX, the South East European Power Exchange, have just announced that they have entered into a cooperation for the listing of cash-settled power futures. Pending the approval of the relevant authorities, EEX will list Base Months, Quarters and Year Futures for the Serbian market area. The products will be settled against the Serbian day-ahead spot price as calculated by SEEPEX. Both exchanges envisage the launch of the new contracts in early 2019.
Milos Mladenovic, Managing Director of SEEPEX, commented:
We are looking forward to this promising cooperation. The listing of Serbian power futures at EEX will contribute to further develop liquidity and confidence in the Serbian power spot market, which is developing rapidly to become a main hub for cross border trading in the SEE region, placing SEEPEX as a relevant role model for all other neighboring power exchange initiatives.
Dr Tobias Paulun, Chief Strategy Officer of EEX, added:
This steps follows our strategy of establishing a Pan-European offering for power trading, also with a focus on the emerging power business in the Eastern and Southeastern European markets.
The cooperation will foster the development of the Serbian electricity market, which has seen strong growth in 2017 and particularly 2018. All market participants will benefit from the standard product setup which enables them to use Serbian Power Futures as a tool to hedge against price risks in the local power spot market, benefitting from high-level standards both in terms of derivatives trading and clearing services.