ESSEN, Germany, Feb 11 (Reuters) - Olso-based exchange Nasdaq OMX Commodities will further raise its share of financial German power trading this year after making inroads in 2013, its president said on Tuesday.
Georg Aasen said the push would be supported by European regulators seeking to ensure all wholesale trading volumes are cleared - meaning financially cross-checked by exchanges or clearing houses, and added that market players were also looking for alternatives to its bigger rival EEX.
“We will see good numbers again this year, perhaps adding 10 percent to our cleared (German) volumes,” he said at a briefing during the E-World trade fair in Essen, Germany, where energy market participants discuss market trends.
The Norwegian derivatives player had a clearing turnover of 40.7 terawatt hours of German power forwards last year, more than double the 19.6 terawatt hours in 2012.
Germany is Europe’s biggest wholesale power market, trading an estimated 6,000 terawatt hours of electricity, roughly 10 times its national consumption.
Of this volume, about 80 percent is still uncleared, but tighter financial regulation requires that they be brought more into line.
“All (German) volumes may be cleared within five years,” Aasen said.
Power contracts allow future hedging of supply at prices that are set in a liquid trading environment, made up by genuine customers, as well as independent traders and financial operators.
Aasen said Nasdaq had put staff in place in Berlin and Britain, where especially banks trade German power, to support its push in German power forwards.
The exchange’s targeted clientele are medium-sized companies, among them industrial consumers and distributors of power and funds entering the energy market, he said. (Reporting by Vera Eckert; Editing by Pravin Char)