EEX's Italian power futures trade triple in Feb-April

Wed Jun 11, 2014 7:08am EDT

* Volumes rose to about 7 TWh in April from 2 TWh in Feb

* EEX targets trading membership of 40 by end of the year

* Considers wind power futures offering

FRANKFURT, June 11 (Reuters) - Volumes of German energy bourse EEX's Italian electricity futures more than tripled between February and April, an exchange spokeswoman said on Wednesday, confirming information circulated at recent meetings by exchange officials and members.

The volumes rose to just over 7 terawatt hours (TWh) in April from just under 2 TWh in February, according to slides presented by the EEX's head of sales, Tim Greenwood at an EEX event last week. The slides were obtained by Reuters.

The spokeswoman declined to give more up to date figures or a target figure for the year.

Greenwood's slides showed that EEX wants to have 40 active trading members by the end of the year from 15-20 now.

EEX launched order book trading on April 7 for the Italian power market, in competition with existing contracts offered by Borsa Italiana.

This followed EEX's launch of a trade registration service for Italian power transactions that are concluded bilaterally or via brokers for clearing at the EEX subsidiary ECC (European Commodity Clearing) last October.

EDF Trading and Edison Trading are signed up as market makers - providing liquidity by quoting both a buy and a sell price - for the EEX products, which are financially settled weekly, monthly, quarterly and annual power expiries.

Two more market makers who are not yet named, are due to join up soon.

The exchange, majority owned by Deutsche Boerse derivatives unit Eurex, is also due to open an office in Milan soon.

The Italian Derivatives Energy Exchange (IDEX), part of London Stock Exchange subsidiary Borsa Italiana, launched Italian power derivatives in 2008 and currently offers baseload and peakload products for the month, quarter and year.

The EEX intends to launch trade registration services for the clearing of power futures in some other European regions and to roll out new location spread products for Germany, Italy and France by the end of the year, the slides showed.

It is also reviewing its options offering and is considering a wind power futures offering. Similar products for Denmark, Britain and Spain could follow later. (Reporting by Vera Eckert, editing by Susan Thomas)

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