ECC Trading Limits Services. EEX Group Workshop 11 June 2015

Transcription

1 ECC Trading Limits Services EEX Group Workshop 11 June 2015

2 Agenda ECC Limit Service Rationale Legal Framework Achievements Spot Markets Derivatives Markets Handling Outlook 2

3 ECC Limit Service - Rationale Strong demand for effective Trading Limits in all market segments and connected trading venues Allow the provision of clearing services to a broader trading community Provide one central channel and one harmonized methodology ECC cooperates with connected partner exchanges to further improve the existing limit management functions by designing and implementing new trading limit functionalities ECC aims to provide a central, self-service trading limit management system, which is going to be accessible through ECC member area 3

4 ECC Limit Service Legal Framework ECC Clearing Conditions, (2): The Non-Clearing Members are obliged to establish agreements regarding Trading Limits, upon a request by the Clearing Members. In this case, the Clearing Members can store the Trading Limits agreed on with their Non- Clearing Members in the system of ECC or in the trading systems of the respective markets depending on their technical implementation. ECC Clearing Conditions, (3): ECC supports the Clearing Members in submitting Trading Limits in the trading systems of the respective markets by forwarding the information on the Trading Limits provided by the Clearing Members to the Markets and coordinating the first transfer as well as the regular reconciliation of the Trading Limits with the respective markets at the times supported by the Market. 4

5 ECC Limit Service Achievements ECC cooperates closely with associated Partner Exchanges and Clearing Members to implement Trading Limits in all market segments and trading systems Requirement analysis involving Clearing Member and Market Participants Development of a blue-print for Spot Market Daily Cash Limit Implementation of a file based limit management solution (supporting EPEX and PWX cash limits) January 2015 Go-live of new EPEX Financial Trading Limit for Auction Trading Allows with 1 limit in EUR to effectively cap the exposure per participant and trading day M a y 2015 Go-live of new PEGAS Daily Cash Limit for Spot Trading Allows with 1 limit in EUR to effectively cap the exposure per participant and settlement cycle on-going 2015 Implementation of a limit management self-service solution based on ECC s Member Area On-boarding of additional exchanges and market segments Development of a blueprint for Derivatives Market trading cash limits 5

6 ECC Limit Service Spot Markets Exchange Market Limit Type Definition Emissions Primary Market Auction Trading Emissions Secondary Market Continuous Trading Power Spot Hourly Auction Trading Power Spot 15-Min Auction Trading Power Spot Hourly & 15-Min Auction Trading Power Spot Continuous Trading (phase-out) (phase-out) Financial Limits (NEW) Financial Limits Maximum Quantity of contracts to be bought in every single auction during the day with every single order Maximum hourly Quantity in MWh defined for purchase and sell per delivery area Maximum 15-Min Quantity in MW defined for purchase and sell per delivery area Max. financial Exposure per Auction Day across all delivery areas and portfolios Max. financial amount across all delivery areas between consecutive ECC booking cuts (16:00 CET) Power Spot Hourly Auction Trading Financial Limits (PLANNED) See EPEX SPOT Auction Limit Natural Gas Spot Trading Financial Limits (NEW) Max. financial amount resulting from spot trades between consecutive ECC booking cuts (16:00 CET) Power Auction Trading Financial Limits Max. financial amount of any regular Spot order at the common day-ahead platform of OTE and PXE per trading day 6

7 ECC Limit Service Offering Derivatives Markets Exchange Market Limit Type Definition Derivatives Exchange Trading Derivatives Trade Registration with every single order with every single order Natural Gas Derivatives Trading (Pre-Clearing Limt) with every single trade EEX Trade Registration (Straight-Through-Processing) PWX Trade Registration (Straight-Through-Processing) with every single trade with every single order 7

8 ECC Limit Service - Handling CM signs up for limit service Provisioning of limit information to ECC Clearing Member ECC Processing of limit information Forwarding of limitation request to exchanges Processing of limitation request Application of limits in trading system Exchange Feedback Exchange: Provision of confirmation/ error message to ECC ECC: Forwarding of feedback to CM Trading Participants can access information about their Limits in the Trading System or respectively can retrieve it from the exchange concerned. 8

9 ECC Limit Service - Outlook Functionality similar to EPEX SPOT Auction Limit to be decommissioned at the same time HUPX Day-Ahead Auction PEGAS combined cash limit Powernext and ECC to launch integration of PEGAS Derivatives markets in the existing cash limit solution one combined cash limit to be introduced in the 2 nd half 2015) Limit updates can be requested any time of the day Fully automated synchronization with the respective exchange ECC self-service Limit Management System Manage Trading Limits in the online GUI with dualcontrol Specific reporting features 9

10 Any questions? Onno Henze Risk Operations Phone: Pieter Hauffe Clearing Initiatives Phone:

11 Thank you for your attention!