What does EEX stand for?
Terms briefly explained
How is trading carried out on the EEX?
As on any other exchange, trading takes place by bringing buyers and sellers together, with prices being determined by supply and demand. By publishing trading data, EEX ensures transparency in the energy market. The EEX has specific opening and closing times for different products. Some auctions, for example for CO2 emission allowances, are subject to special schedules for auction procedures that influence the process of bidding and trading. Trading begins with order placement via an electronic trading platform, where traders place their buy or sell orders with information such as product type, price, quantity and execution time. After the respective close of trading, the gate closure time, the prices for all products are published.
In addition to trading, EEX offers clearing services in which the clearing house handles settlement and guarantees the fulfilment of trading obligations. This clearing phase is followed by settlement, where the financial obligations of the trading participants are processed, including the transfer of funds and the transfer of the traded products. This structured process ensures transparent, secure and efficient trading on EEX and differs fundamentally from bilateral over-the-counter (OTC) transactions, where transactions are executed outside a regulated exchange.
One energy exchange, different energy markets
The EEX comprises a large number of energy markets that enable trading in a range of energy products. The most important markets include power, natural gas and CO2 emission allowances.
Short-term products are traded on the spot market - for example with delivery on the following day (day-ahead trading). Short-term trading in electricity is handled by the EPEX Spot power exchange (link). For the various gas markets such as TTF and THE, the EEX offers different spot products with the exception of hourly contracts.
Derivatives market
In the power and gas markets, EEX offers both futures contracts (EEX Futures) and options. On the futures market in electricity trading, the delivery of electricity is fixed at a later date. The advantage is that the electricity prices are known at the time of conclusion and the development of electricity prices in the future can no longer have any influence on them. Futures are purely financial, long-term transactions that enable market participants to manage price risks and hedge against future fluctuations on the electricity market.
Baseload and peak load
The distinction between base and peak contracts enables energy traders and bulk buyers to precisely coordinate their procurement and manage risks. In the electricity market, delivery at a constant output from Monday to Sunday from 0:00 to 24:00 is referred to as base load. Peak load - or peak load - describes a supply with constant output from Monday to Friday from 8.00 am to 8.00 pm. In addition to base and peak, there are many other time-defined products in electricity trading, such as weeks or quarters. The short-term products are traded on EPEX Spot.
Emissions trading
EEX also plays an important role in emissions trading. It organises auctions for CO2 certificates and is a key player in the European emissions trading system.
Did you already know?
European Energy Exchange
The European Energy Exchange in Leipzig is a market place for energy and energy-related products and part of EEX Group. As an institution under public law, EEX is subject to the German Exchange Act.
Participation in EEX trading is open to a wide range of players, from energy producers and utilities to financial institutions and industrial companies. Even private investors can participate in the market via brokers, with clear regulations and access conditions guaranteeing the fairness and integrity of trading.
The prerequisites for admission to trading are accreditation of the company and successful completion of the EEX trader examination by the traders.
The EEX and EPEX Spot are two different energy exchanges in Europe that focus on different segments of energy trading: while the European Energy Exchange offers a wide range of energy products for trading, EPEX Spot specialises in short-term power trading. This includes the day-ahead market, on which electricity is traded for the next day, or the intraday market, on which continuous trading takes place up to five minutes before delivery. EPEX Spot enables the trading of electricity in real time and thus offers an efficient solution for the short-term demand for electricity.
