Trading on an exchange
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Trading on an exchange. ADVANTAGES Fewer contractual relationships Lower credit risk Guarantee and margin needed only by one central counterparty Simplified invoicing and administration High degree of automisation , standardisation. Limiting the scope for OTC transactions.

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Trading on an exchange

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Trading on an exchange

Trading on an exchange

ADVANTAGES

  • Fewer contractual relationships

  • Lower credit risk

  • Guarantee and margin needed only by one central counterparty

  • Simplified invoicing and administration

  • High degree of automisation, standardisation


Limiting the scope for otc transactions

Limiting the scope for OTC transactions

DISADVANTAGES

  • Risk of excessive fees

  • Inflexibility of gate closures

  • Lack of broker competition

  • Risk of complexity in rules


Competition between trading platforms

Competition between trading platforms

ENERGY TRADERS

TRADING PLATFORMS

TRANSACTIONS


Enhancing liquidity

Enhancing liquidity

National market with limited wholesale volumes

POWER EXCHANGE A

POWER EXCHANGE B

POWER EXCHANGE

POWER EXCHANGE C


Market coupling

Market coupling

POLPX

EEX

CEEPEX

PXE

PXE

EXAA

HUPX

SouthPool


Thanks for your attention

Thanks for your attention

European Federation of Energy TradersAmstelveenseweg 9981081 JS AmsterdamTel: +31 (0)20 5207970Email: [email protected]

www.efet.org


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