Euro-based trading on CEEGEX, the regional gas exchange started and the first week of trading was closed with a turnover of 2.4 million Euro and 127 GWh, announced KELER CCP Ltd. providing clearing house and guarantee undertaking services. Euro-based trading eliminates the foreign exchange risk of gas exchange trading, and facilitates price comparison between CEEGEX and international markets. This is a major step towards the uniform European market.
As of October, trading and clearing on CEEGEX, the Central Eastern European Gas Exchange are based on Euro instead of Forint. In the first week of Euro-based clearing, single-counted turnover on CEEGEX amounted to 2.4 million Euros and 127 GWh, stated KELER CCP Ltd., a member of the KELER Group, providing clearing house and guarantee undertaking services. Within this turnover 1.8 million Euro and 96 GWh were realized by day-ahead and within-day trading, and long-term trading represents 0.6 million Euro and 31 GWh.
Price comparison made simple
In addition to clearing and settlement, risk management related processes will also be Euro-based with the start of Euro-based trading and clearing. However, KELER CCP continues to denominate service fees in Forint. Károly Mátrai, KELER CCP Ltd. Chief Executive Officer said the change of trading currency does not affect the risk management methodology, but the management of eligible collateral instruments will change.
„Euro-based trading is important for two main reasons. Firstly, it is advantageous for market players as they can compare easier CEEGEX prices to the prices of major international gas exchanges, and, secondly, the foreign exchange risk due to Forint/Euro conversions will be eliminated from the system”, said Károly Mátrai. He added: the Euro-based clearing system is a major step towards the creation of the uniform European energy market.
What to expect in the future?
The Chief Executive Officer also pointed out that while at the end of last year 14 participants, including five companies seated abroad had individual clearing membership on the CEEGEX market, today there are 21 registered active trading members. The strategic goal of KELER CCP is to increase further the number of members this year and in the coming years also. To this end, KELER CCP intends to create close cooperation with partner exchanges, develops continuously its systems and unique, cost efficient services, and also looks for opportunities of acquisition.
KELER CCP closed the last year with an income of HUF 1.278 billion, an increase of 11% over the previous period. Károly Mátrai expects that this year KELER CCP income will grow with an additional 5% and will exceed 1.300 billion Forints.
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KELER Group
The Magyar Nemzeti Bank and the Budapest Stock Exchange are the owners of KELER Central Depository Ltd. (KELER) that was founded in 1993. With KELER CCP Ltd., its subsidiary, (jointly: KELER Group), they form the infrastructure to ensure the smooth operation of the Hungarian capital and energy markets. KELER, as the only central securities depository of the Hungarian capital market, provides the infrastructure for Hungarian securities issuance, the settlement of Hungarian securities transactions. KELER CCP as clearing house ensures secure and transparent trade clearing: it substitutes the clients involved in the contracts concluded in one or several financial markets. It acts as buyer to all sellers and as seller to all buyers by acting as the only counterparty to all of them and guaranteeing trade settlement. KELER CCP as clearing house complies with the strictest European requirements, and provides clearing services to the Budapest Stock Exchange’s derivatives and securities markets, MTS Hungary government trading platform, CEEGEX Central Eastern European Gas Exchange and the TP Hungarian balancing gas market, and provides general clearing member services on HUPX, the Hungarian organized power trading market, the German, French, Czech and Serbian energy markets, and the Austrian gas market.
An innovative service provider with reliable professional and IT background, corresponding international practice, Hungarian and international regulations, the KELER Group builds on its stable shareholder background and capital position when serving its clients, takes into account the present and future needs of market participants and forms an interest group with market players. Its objective is to become a key player in the regional and the European markets by relying on market and service innovation.