E.ON and RWE first to trade on UK’s new power market ahead of market launch
N2EX, the UK power market set up by NASDAQ OMX Commodities and Nord Pool Spot, has carried out its first successful live notification and trading as part of the testing ahead of market launch in January 2010. The first trade took place on Friday 18 December between N2EX UK market participants RWE and E.ON, seen as a critical step towards a successful market launch.
Set to formally launch its day-ahead auction market on 11 January, and trading and clearing for the prompt market the following day, the N2EX market design has been tailored to the specific requirements of the UK power market with the goal of creating the UK’s premier energy exchange.
“We are absolutely delighted to be able to confirm that the new N2EX platform is fully ready to open for business,” says Paul Beynon, vice president UK power trading in RWE Trading GmbH and chairman of the Power Trading Forum of Futures and Option Association (FOA). “Not only have we completed our account opening process, but we have executed test trades with another market participant. The trades were ‘live’ and executed via two brokers, and have been notified successfully. This was our final market trial prior to go live in early January. We are thoroughly looking forward to support the exchange in the new year. We would urge any who have not already done so to get on with the process of preparing to do business on the new platform which we think will significantly enhance liquidity and transparency over time,” he says.
Jon Doughty, head of portfolio optimisation, W European Power & Emissions Trading at E.ON Energy Trading, says: “The first trades have been completed on the platform successfully and it is an exciting time for the UK market participants and N2EX who have worked hard to get to this stage. We are extremely optimistic about the future of the market and look forward to the next stage of development when it launches in January.”
The aim of the new UK market place is to establish a physical reference price based on the physical power market and to build market liquidity, efficiency and transparency. Later N2EX will establish a cash-settled derivatives power market, with a full range of clearing services and cross-commodity netting opportunities. The derivatives market will be based on the physical reference price.
Lysaker, 22 December 2009
For further information, please contact N2EX:
Geir Reigstad, NASDAQ OMX Commodities, phone +47 9084 6735
Press contact: Thomas Skålnes, corporate communications,
NASDAQ OMX Commodities, phone +47 6752 8080/+47 9340 7300
Marie Thuestad, director sales, Nord Pool Spot AS,
phone +47 6710 9160/+47 9704 0190