EEX - European Energy Exchange

The Leipzig based European Energy Exchange (EEX) provides spot and derivatives markets for power, natural gas and emission rights. Furthermore, EEX offers trading of cash-settled coal contracts.

EEX was founded in 2002 as the result of the merger of LPX Leipzig Power Exchange and European Power Exchange. Operating markets for energy products and emission allowances under one roof, EEX is the leading energy exchange in continental Europe. EEX prices serve as the reference for the major European energy markets. Currently more than 200 trading participants from 19 countries trade at EEX (as of April 2008). Members range from top investment banks to small, regional producers, from all over Europe.

The EEX operates an established Clearing House specializing in energy markets: the European Commodity Clearing House (ECC), which is a fully owned subsidiary of EEX. With the integrated clearing of exchange transactions and over-the-counter transactions (OTC clearing), trading parties can eliminate their counterparty risk. Numerous prominent clearing banks provide clearing services to market participants.

As part of the EEX/Eurex cooperation, which kicked-off in December 2007, EEX and Eurex offer trading in emission rights through the Eurex® system, which they both use. Eurex participants can trade EEX CO2 products via their existing infrastructure connections. This results in a marketplace for CO2 products, which takes the trading, clearing, and settlement standards of financial markets fully into account. Therefore, the cooperation has increased liquidity and efficiency in the market. By joining their distribution networks, the partners address more than 600 trading member firms, resulting in the largest international network for emissions trading. Members also include financial market participants in the UK and the U.S., amongst others.

To support the strategic partnership, Eurex maintains a 23.22 percent stake in EEX.

www.eex.de