European Energy Exchange AG (EEX) and the Amsterdam-based ENDEX European Energy Derivatives Exchange N.V., will co-operate in the settlement of energy trading transactions as of 5 July 2006.
A corresponding contract was signed in Düsseldorf today. Clearing will be carried out via European Commodity Clearing AG (ECC), the spin-off clearing house of EEX.
"We have established European Commodity Clearing AG in order to create the basis for a Pan-European clearing solution which is tailored specifically to energy and related products. We are proud of having found a first strong partner for achieving this aim with ENDEX even before the new company is operational," Dr. Hans-Bernd Menzel, chairman of the management board of the European Energy Exchange AG, explains. As a partner, ENDEX will also be given the possibility of becoming a shareholder in ECC, Menzel continues.
Stephan Follender, managing director of ENDEX European Energy Derivatives Exchange N.V., adds: "This is the first step towards a truly integrated European energy market with open access for all market players."
At first, ENDEX will introduce gas futures referring to the virtual Title Transfer Facility in the Dutch grid into clearing on ECC. The clearing across exchanges will lead to a reduction of the collaterals to be furnished by participants trading on both exchanges on account of the benefits arising from netting-out and cross-margining effects.
European Commodity Clearing AG is the spin-off clearing house of EEX and is a wholly owned subsidiary of the exchange.