The European Energy Exchange (EEX), based in Leipzig, Germany, and the Amsterdam-based Endex - the European Energy Derivatives Exchange - are to co-operate in the settlement of energy trading transactions from July 5, 2006.
Clearing will be carried out via European Commodity Clearing (ECC), the spin-off clearing house of EEX.
We have established European Commodity Clearing 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 EEX, explains. As a partner, Endex will also be given the possibility of becoming a shareholder in ECC, Dr Menzel added.
Stephan Follender, managing director of Endex added that the move constituted 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.