Gas trader workshop_2013 1 pdf - EEX

EEX gas trader workshop 2013
PEGAS, Gas trading via Trayport ® ETS and quality specific gas products
© European Energy Exchange AG

Gas trading in EEX group
European Energy Exchange AG with registered offices in Leipzig,
offices in London and Brussels
(42 shareholders; majority shareholder: Eurex Zürich AG)
Further shareholdings
EPEX SPOT SE with registered offices in Paris, branch in Leipzig
(shareholders: EEX 50 %, Powernext 50 %)
Spot Market for Power (D/F/CH/AT)
EEX Power Derivatives GmbH with registered offices in Leipzig, branch in Paris
(shareholders: EEX 80 %, Powernext 20 %)
Derivatives Market for Power (D/F)
EGEX – European Gas Exchange with registered office in Leipzig
(shareholder EEX 100%)
Natural Gas Spot and Derivatives Market
European Commodity Clearing AG with registered offices in Leipzig
(shareholders: EEX 98.5 %, Powernext 1.5 %, APX-Endex 1 nom. share)
Clearing and settlement for 6 Partner Exchange
European Commodity Clearing Luxembourg S.à.r.l. with registered offices
in Luxembourg (shareholder: ECC 100 %)
Integrated into the settlement of physical deliveries
2

EGEX - Why do we need an own company?
„Nucleus“ for merger/cooperation with other gas exchanges
Partner/Cooperation exchanges often only active in gas markets
Conversation and negotiations on a level playing field
Marketing of gas trading at EEX as own business field
Spinoff whole spot and futures trading in natural gas
Avoiding often used phrase “gas trading at power exchange”
Integration of important stakeholders in European gas markets
Precondition: Same interest in sustainable development of liquid and
transparent gas exchange in respective market areas
Market area operators (MAO) and TSO’s
Gas supply and gas trading companies
Other stakeholders
3

Lasting Interest in EEX Gas Trading
New member
∑ 125
Existing member
EGEX (125)
CEGH-EX(75)
ICE Endex NBP (75)
ICE Endex TTF (73)
Powernext (48
ICE Endex Zee (25)
Nord Pool Gas (20)
As of May 2013
4

Members at EEX for gas trading
advanced energy trading GmbH ENSO Energie Sachsen Ost AG Polski Kocern Naftowy Orlen SA
Alpiq AG Erdgas Münster GmbH Poweo Direct Energie S.A.
Axpo Trading AG EWE TRADING GmbH Quantum GmbH
Barclays Bank PLC EWV Energie- und Wasser-Versorgung GmbH RheinEnergie Trading GmbH
Bayerngas Energy Trading GmbH ExxonMobil Gas Marketing Europe Limited RWE Supply & Trading GmbH
BECOMAC GmbH Freepoint Commodities Europe LLP Salzburg AG für Energie, Verkehr & Telekommunikation
BG International Limited Gas Natural Europe S.A.S. SE Scherbeck Energy GmbH
BKW FMB Energie AG Gas Natural SDG S.A. Shell Energy Europe Limited
BP Gas Marketing Limited Gasag Berliner Gaswerke Aktiengesellschaft Skandinaviska Enskilda Banken AB
Braunschweiger Versorgungs-AG & CO. KG GASPOOL Balancing Services GmbH Société Générale S.A.
Centrica Energy Limited Gazprom Marketing & Trading Limited Sorgenia Trading S.p.A.
CEZ a.s. GDF Suez Trading SAS Spectron Energy Services Limited
citiworks AG Getec Energie AG Stadtwerke Düsseldorf AG
Crédit Agricole Corporate & Investment Bank, GFI Securities Limited Stadtwerke Flensburg GmbH
Danske Commodities A/S Global Commodities SAS Stadtwerke Hannover AG
DB Energie GmbH Gunvor International B.V., Geneva Branch Stadtwerke Heidenheim Wärmeservice GmbH
DELTA Energy B.V. Hess Energy Power & Gas Company (UK) Ltd., Stadtwerke Karlsruhe GmbH
Deutsche Bank AG ICAP Energy A/S Stadtwerke Leipzig GmbH
DONG Energy Markets GmbH J.P. Morgan Securities plc. Stadtwerke München GmbH
DONG Naturgas A/S KES Kommunale Energiedienstleistungsgesellschaft Südsachsen mbH Stadtwerke Viernheim GmbH
Dortmunder Energier- und Wasserversorgung GmbH Koch Supply Trading Sàrl Statkraft Energi AS
DREWAG - Stadtwerke Dresden GmbH KoM-Solution GmbH Statkraft Markets GmbH
DUON Marketing and Trading S.A. Lechwerke AG Statoil ASA
e&t Energie Handelsgesellschaft m.b.H. LichtBlick AG Südwestdeutsche Stromhandels GmbH
E.ON Global Commodities SE Lumius spol s.r.o. SYNECO Trading GmbH
EconGas GmbH Macquarie Bank Limited (London Branch) Technische Werke Ludwigshafen am Rhein AG
EDF Trading Limited Mark-E Aktiengesellschaft TFS Derivatives Ltd.
Edison S.P.A. Markedskraft ASA ThyssenKrupp AG
EHA Energie-Handelsgesellschaft mbH & Co. KG Mercuria Energy Trading S.A. Total Gas & Power Limited
eins energie in sachsen GmbH & Co. KG MITGAS Mitteldeutsche Gasversorgung GmbH Trianel GmbH
Electrabel S.A. Morgan Stanley & Co. International plc Tullet Prebon (Securities) Limited
EnBW Trading GmbH MVV Trading GmbH UBS AG
Energi Danmark A/S natGAS Aktiengesellschaft Vattenfall Energy Trading GmbH
Energie AG Oberösterreich Trading GmbH Neas Energy A/S Vattenfall Energy Trading Netherlands N.V.
EnergieFinanz GmbH NetConnect Germany GmbH & Co. KG VEMEX s.r.o.
Energiehandelsgesellschaft West mbH Nexus Energie GmbH VERBUND AG
Energieunion GmbH Noble Clean Fuels Ltd. Vitol S.A.
Energy & More Energiebroker GmbH & Co. KG OMV Trading GmbH VNG Verbundnetz Gas AG
ENLOGS Energy Logistics & Services GmbH Optimization Engineers GmbH WINGAS GmbH
ENOI S.p.A. Pfalzwerke AG WSW Energie & Wasser AG
Enovos Deutschland AG PGNiG ENERGIA SA Youtrade S.p.A.
ENOVOS Luxembourg S.A.
PGNiG Sales & Trading GmbH
As of May 2013
5

Spot markets - strong support by trader
Developments in the spot market gas
10.000
80
Tradi ng vol ume in GWh
9.000
8.000
7.000
6.000
5.000
4.000
3.000
TTF
GASPOOL
NCG
73
66
59
52
45
38
31
Nu mb e r of act ice me mb e rs
2.000
24
1.000
17
0
10
Liquidity increase, especially in cold months, regardless of control energy
Summer months indicates lower trading needs and therefore lower liquidity
Sustainable increase of active trading member
6

Consolidation of European gas markets
Development of European gas hubs
in 2011 in comparison to 2010
Hubs Spot market Futures market
TWh Δ to 2010 TWh Δ to 2010
NBP 753 + 1% 14.300 +9%
TTF 253 +24% 6.000 +49%
NCG 208 +72% 644 +45%
GPL 78 +80% 212 +78%
PEG 90 +27% 270 +55%
ZEE 121 -8% 725 +34%
* both OTC and Exchange volumes
Source: Powernext, Study of Baringa Partners „Gas survey“, 2012
Continental European gas markets show highest growth potential
Grow potential of NBP almost exhausted by very high trading volumes
Relaunch of Belgian markets with physical Hub und VTP Zeebrugge remains very ambitious
Gas business of APX-Endex token by ICE, Cooperation of EEX and PWX in PEGAS
7

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
8

Legal Disclaimer to PEGAS
“EEX and Powernext remain two separate entities performing a Cooperation
named PEGAS. PEGAS constitutes a brand name commonly used by EEX and
Powernext to communicate and promote the Cooperation. PEGAS has no legal
personality, your legal and contractual relationship with the respective
exchanges remain unchanged.”
9

Why PEGAS ?
Because of your feedback !
Traders want full product range across Pan-European gas markets
Traders enjoy easy access & merged order books
Traders benefit from 130+ admitted gas counterparts on both exchanges
Trading companies ask for cross-margining & Straight through processing
Pan-European Gas cooperation
Powernext
EEX
PEG’s TTF-Future TTF-Spot NCG GASPOOL
10

New PEGAS Products
All existing EEX gas contracts to be traded on Trayport
One click: Location spreads key for market participants
Implied prices: Outright spread will add liquidity in outright legs
Harmonized trading calendar, trading times and market rules
1 st step: 10MW EEX gas products migrated onto Trayport*
New 1MW EEX gas futures available**
* incl. 1MW EEX Within-Day contracts ** All 1MW EEX gas contracts to be added onto Trayport after the migration period
11

Market Areas and Locational Spreads
1MW EEX gas contracts, spot & futures, will be tradable on ComXerv & Eurex during a tradition period before migrating to Trayport
12

Easy Access to PEGAS
Two backends become one: Joint Trayport platform simplifies gas trading
One licence = One login = All gas products
Trayport ® Exchange Trading System SM (ETS) allowing location spreads
Smooth transition – No order forms for active EEX traders
Migration period with Go-Live:1MW order books remains on ComXerv, Eurex
No double charge of connectivity costs during migration
Two frontend alternatives: Gas Direct Screen & Trading Gateway SM (TGW)
No additional costs for EEX gas trading – „Common“ members pay even less
Attractive pricing scheme for bigger shift desks (EEX Gas Spot)
€15,000 yearly EEX voucher on technical access fees still applies
13

EEX Trading Licences
Member of EEX
Spot
NCG
GPL
TTF
EEX spot
market licence
Member of EEX
Spot Derivatives
NCG
GPL
TTF
Member of EEX &
Powernext
Spot
PEG Sud
TIGF
NCG
GPL
TTF
PEG Nord
Derivatives
EEX market licence
Cooperation licence
All relevant location spreads tradable, depending on the licence
14

Clearing & OTC-Registration
Secure clearing & settlement through ECC, the leading European clearing house
Significant savings: Cross-margining of positions across all gas hubs, including
clearing of OTC transactions via simplified registration process:
At EEX, registration is facilitated through Straight-Through Processing (STP)
via brokers by usage of EFETnet Clearing Registration Service (eXRP) and/ or
Trayport’s Clearing Link
Powernext web platform allows to register EEX Futures outright products in
addition to Powernext products
Direct registration at EEX via existing EUREX entry window
15

One Platform for One European Gas Market
Both exchanges combine efforts to develop Pan-European Gas trading
Simply participate !
Fair pricing offer
Joint sales visits available
Qualitiy of the order book: Improved Market Making
16

EEX Investing in Gas Market Makers
Existing contracts –
Maximum spreads
Product
current
M+1 0,4
M+2 0,5
M+3 1,0
M+4 1,0
M+5
M+6
Q+1 0,6
Q+2 0,6
Q+3 0,6
Q+4 0,6
Q+5
Q+6
Q+7
S+1 1,0
S+2 1,0
S+3 1,0
S+4
C+1 1,0
C+2 1,0
C+3 1,0
C+4
C+5
C+6
NCG
Aiming for attractive order books
D/A and W/D books fairly quoted
Still room for improvements on the curve
… depending on individual performance & internal budget:
EEX and also ECC fee rebate
Extra monthly stipend for competitive spreads
Product NCG GASPOOL
Spread MW Spread MW
M+1 0,12 30 0,14 30
Q+1 0,18 30 0,18 30
S+1 0,17 10 0,18 10
S+2 0,17 10 0,18 10
C+1 0,17 10 0,18 10
17

Improved EEX Liquidity
18

PEGAS Price Lists for New Members
Market segment
Technical access
Market segment
and technical access
€20k
All Spot and Futures markets
(TTF, PEG Nord, PEG Sud, PEG TIGF)
2 trading licenses included
€25k
All EEX markets
(€15k voucher on technical fees included )
€15k
All Spot markets
(PEG Nord, PEG Sud, PEG TIGF)
1 trading license included
€7k NEW: EEX Gas markets only
€10k
NEW: All Futures markets
(TTF, PEG Nord)
No trading license included
€ 1,800 /yr for any additional Trayport license
(compared to € 4,000 /yr currently)
€10k entrance fees
Pricelist for additional Trayport licenses::
• EEX Spot and Futures markets: € 1,800 /yr
• EEX Spot markets:
o up to 5 licenses: € 1,500 /yr
o from 6 to 10 licenses: € 750 /yr
o for more than 10 licenses: € 150 /yr
19

Existing EEX Members –
More Benefits to Join Powernext Now
Fast track Powernext admission procedure
No entrance fee at Powernext
Trading in TTF futures at no additional costs possible for EEX members:
Powernext: Reduction of all Membership annual fee by €5k/yr*
EEX: Additional voucher of €5k/yr on trading fees in TTF futures*
No additional fee on existing EEX licences to add Powernext products!
New licenses to trade EEX and Powernext products for €1,800/yr (vs €4k before)
*€ -5k Powernext membership fee reduction & EEX membership voucher in 2013 and 2014
20

Technical Access & Trading Licences
Member
Gas Direct Screen
Trade
View only
user
Trade
Trading Gateway SM
Usage for integration of EEX gas prices
in existing trading systems
Downstream user
compulsory for the system to work;
obligation to order 2 logins/licences
Trayport® ETS
API-Access*
View only for market data
View only user
1 login/
1 password
1 login/
1 password
1 login/
1 password
1 login/
1 password
1 login/
1 password*
1 login / 1 password
Software
platform
Trayport® Exchange Trading System℠ (ETS)
Exchange Technical
fees / charges
Cooperation licence
all EEX+PWX markets + Downstream user
EEX market
licence
EEX spot
market licence
€/a NCG + GPL + TTF spot PEG’s + TTF future NCG + GPL + TTF spot NCG + GPL + TTF
Technical access 1...5 1,800 1,800 1,500
Technical access 6...10 1,800 1,800 750
Technical access > 10 1,800 1,800 150
*Second login for Downstream user is for free; logins for Downstream user and API-Access are charged at 1,800 €
21

PEGAS Transaction Fees
Fees for trading, OTC-registration, clearing and delivery within PEGAS cooperation
Spot market
Derivatives market
Fees in €ct/MWh Trading Clearing/Delivery Trading OTC-Registration Clearing Delivery
TTF 0.5 1.0 0.20 0.20 0.25 1.0
NCG + GASPOOL 0.5 1.0 0.25 0.25 0.25 1.0
PEG Nord 1.0 1.0 0.50 0.40 0.25 1.0
PEG Sud 1.0 1.0 0.50
TIGF 1.0 1.0 0.50
Location spread NCG/TTF* 0.5 1.0 0.25 0.25 1.0
Location spread GPL/TTF* 0.5 1.0 0.25 0.25 1.0
Location spread PEG Nord/TTF* 1.0 1.0 0.50 0.25 1.0
Location spread PEG Nord/NCG* 1.0 1.0 0.50 0.25 1.0
Location spread GASPOOL/NCG* 0.5 1.0 0.25 0.25 1.0
Location spread PEG Sud/PEG Nord* 1.0 1.0 0.50 0.25 1.0
* Location-Spreads were charged only one side
22

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
23

Overall targets for EEX by introduction
1. Pooling of trading/liquidity at one VTP per German market area
Merger of already existing 2 VTP per market area for the bulk of gas trader
Matching of H-Gas quotes with L-Gas quotes without extra penalties for trader
2. Reduction of conversion charge to an overall levy before 2016
Commercially merger of 2 VTP per market area asap and before 2016
Increase liquidity and therefore competiveness of German market areas
3. Commercial backup for conversion of market regions
German and Dutch L-Gas production is decreasing
First conversion of market areas regarding gas qualities starting in 2016 (LH-Gas)
4. Support of MAO for enabling steps 1, 2 and 3
MAO have to convert in the background for quality overlapping trades
Speed up reduction of conversion charge to an overall levy for all shippers
MAO should to balance the grid in best practical manner and to market conditions
24

Gas trading, independent of gas quality,
demands quality specific control energy
Gas trading at VTP, independent of gas quality, is possible if:
Conversion fee is substituted by overall conversion levy for all shippers
Conversion fee discriminates gas quality overlapping gas traders
Conversion fee causes price differences between H- and L-Gas at the same VTP
Conversion fee split liquidity an VTP NCG and VTP GASPOOL
Conversion fee in Germany incentivize gas trading at TTF
MAO converts gas anytime physical or virtual for gas trader
Physically conversion capacities of mixing plants/units are technically limited
Virtual conversion requires quality specific control energy (H-Gas, L-Gas)
Quality specific and market price based control energy trading at EEX
Request of MAO, BNetzA and trader, integration of quality specific gas
products for control energy (H-Gas, L-Gas) in own market areas via EEX
Currently more than 70% of H-Gas control energy were trade via OTC platforms
In comparison to EEX additional costs occurred or losses were generated
Quality specific gas trading for L-Gas ensured since June 11, by trading TTF
gas markets via EEX, but additional transport cost between TTF and NCG/GPL
25

Reduction of control energy charges and
conversion charges at NCG and GASPOOL
Further significant reductions for control energy charges and conversion
charges are possible with quality specific control energy trading at EEX
26

Target model for control energy trading
Clear definition of target model for control energy trading by MAO
Harmonisation and standardisation of products and processes for control energy trading
Timely communication versus gas trader and EEX for implementation
Implementation obligatory with GY 13 partly implementation earlier possible
Existing
implementation
at EEX
Standardised
short-term products
Standardised
long-term products
Non-Standardised
long-term products
Procurement in own
market area
Ca. 40% Ca. Handelsvolumen
40% trading volume
Procurement in adjacent
market areas
Ca. 30% trading volume
Ca. 30% Handelsvolumen
Procurement of
standardised products
via bilateral platforms
Ca. 30% Ca. Handelsvolumen
30% trading volume
Title Market Title market Transaction transaction, if
(Unzureichende liquidity at börsl. the exchange Liquidität) is not
sufficient)
Locational
Locational
Market
market
Transaction
transaction
(gasbeschaffenheitsspezifischer
(local usage)
und lokaler Einsatz)
Tender and call of longterm
options for delivery
over bilateral platform
Coverage of individual,
physical demand, which
could not be covered by
standard products
Source: GASPOOL/NCG; Target model for control energy trading in market areas GASPOOL and NCG
EEX will improve control energy trading via exchange for MAO, gas trader and BNetzA,
increase of liquidity and introduce quality specific gas products
27

Idea: Introduction of quality specific gas
products at EEX for control energy trading
Extension of EEX product portfolio at VTP for “physical products”
Guarantee of “physical” effects of traded control energy volumes
Support and speedup of reduction for conversion fees
Maximum migration of local and physical traded control energy volumes to EEX
Quality overlapping gas trading via exchange
at VTP
Quality specific gas trading via exchange at
VTP for H-Gas
Quality specific gas trading via exchange at
VTP for L-Gas
Market
NCG, GASPOOL, TTF
Market
NCG, GASPOOL
Market
NCG, GASPOOL
Delivery point
VTP
Delivery point
VTP
Delivery point
VTP
Products
(L+H-Gas)
Within-Day, Day-Ahead,
WE, Months, Quarter,
Seasons, CY
Products
Within-Day, Day-Ahead, WE
in H-Gas quality
Products
Within-Day, Day-Ahead, WE
in L-Gas quality
Quality specific gas
trading
No, MAO receives ex-post
information to gas quality
Quality specific gas
trading
Yes, MAO receives ex-ante
information to gas quality
Quality specific gas
trading
Yes, MAO receives ex-ante
information to gas quality
Minimum lot size
1 MW
Minimum lot size
1 MW
Minimum lot size
1 MW
Delivery period
1-24 hours
Delivery period
1-24 hours
Delivery period
1-24 hours
Pricing
Fix price in €/MWh
Pricing
Fix price in €/MWh
Pricing
Fix price in €/MWh
Format for call
Exchange and single-sided
nomination via Exchange
Format for call
Exchange and single-sided
nomination via Exchange
Format for call
Exchange and single-sided
nomination via Exchange
Call
At least 3 hours lead time
Call
At least 3 hours lead time
Call
At least 3 hours lead time
Price adjustment
Anytime
Price adjustment
Anytime
Price adjustment
Anytime
Redelivery
No
Redelivery
No
Redelivery
No
Existing EEX order book
New EEX order book
New EEX order book
28

“Rules of the game” in new products
Trades should cause physical effects in traded market area
In the traded quantity, the member should do an amendment of physical transport
nomination and/or entry/exit nomination in the traded market area
Usage of conversions services for trading quality specific products are not allowed in
the whole balancing construct; exemption: third party cares for physical effect
Prohibition of reverse physical nominations after trading at VTP, which remove the
physical effect in the market area
Market area operators can reactive request shipper for compliance
In case of reasonable doubts, that the shipper did not meet the obligations in balancing
agreement and therefore MAO can’t track any physical effect, MAO can request shipper
to proof their compliance to the rules and proof of physical effect
EEX/ECC allows trading, if MAO confirms compliance to the rules
No changes to already market proved processes at EEX/ECC
If MAO has to suspend/cancel balancing agreement, EEX will suspend the product
29

Benefits for all market participants !
Market area operator (NCG and GASPOOL)
Anonymous 24/7 trading of quality specific control energy to market prices
Higher number of market participants, transparent and reasonable price formation
Backup of grid stability referring to upcoming reductions of conversion fees
Gas trader / shipper
BNetzA
Easy and anonymous trade of quality specific gas products at VTP
Reduction of personal/operative efforts by usage standardised exchange processes
Possibility for L-Gas trading via Exchange in own market area
Further migration of non transparent bilateral control energy trading with few market
participants to exchange with many participants and transparent price formation
Shift of quality specific control energy trading at the VTP
Support to upcoming reductions/abolition of conversion fees
Gas Exchange
Significant increase of exchange liquidity in the spot markets for natural gas
Inclusion of L-Gas trader for exchange trading (1/3 from German sales volume)
30

What should I do to be ready for Go-Live?
Tasks for interested trader
No tasks and changes for trading in existing order books at EEX
For trading in H-Gas order books already used balancing account for EEX could apply
please commit your purpose to MAO and EEX MAO confirms EEX afterwards
For trading in L-Gas order books already used balancing account for L-Gas could apply
please commit your purpose to MAO and EEX MAO confirms EEX afterwards
Tasks for market area operators
Validation/confirmation of quality specific balancing accounts and information to EEX
In case of reasonable doubts, that the shipper did not meet the obligations in balancing
agreement, MAO can request shipper to proof their compliance to the rules
Tasks for EEX/ECC
Setup new order books for GASPOOL and NCG at EEX
Setup new quality specific balancing accounts for H-Gas and L-Gas at ECC
31

Planned roadmap to Go-Live
Milestone Time scale NCG GASPOOL BNetzA EEX BDEW/EFET
1. Address to involved market participants Aug-Sep. 12
2. Approval by involved market participants Aug-Oct. 12
3. Adjustment of German target model for
control energy trading
October 12
4. Publication of target model for balancing October 12
5. Planning of further implementation
between MAO, EEX, BNetzA and
organisations
Q4/12
…Q2/13
6. Traders workshop offered by EEX Q3/13
7. Simulation of trading at EEX Aug-Sep. 13
8. Start of trading at EEX Oct. 13
32

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
33

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
34

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
35

Gas trading systems in migration period
Member
Gas Direct
Screen
(GlobalVision SM Screen)
Trading
Gateway SM
EEX GV-Screen
ComTrader
EUREX-
Frontend
Software platforms
GV-Portal
Exchange
Trayport ® ETS
EEX markets Powernext markets**
GPL NCG TTF-Spot PEG-N PEG-S PEG-TIGF TTF-Futures
ComXerv
EEX markets
GPL NCG TTF-Spot
EUREX
EEX markets
GPL NCG
Location-Spread markets
1 MW products
1 MW products
NCG/TTF GPL/TTF GPL/NCG PEG-N/NCG** PEG-N/TTF** PEG-S/PEG-N**
10 MW products*
* Within-Day products remains on 1 MW; ** Subject to approval and available if member of both PWX and EEX
36

Product specification at start of migration
Specification of Products offered by EEX on Trayport ® ETS Software and ComXerv/EUREX
Minimum
Number of
delivery periods
Lot size
MW
Volume tick
MW
Price tick
€/MWh
Software
platform
Trayport ®
ETS**
ComXerv/
EUREX
Trayport ®
ETS**
ComXerv/
EUREX
Trayport ®
ETS**
ComXerv
EUREX
Within-Day 1…24 h 1 1 1 1 0.025 0.01 0.001
Day-Ahead 1 10 1 10 1 0.025 0.01 0.001
Individual days* 1… 3 d 10 1 10 1 0.025 0.01 0.001
Saturday 1 10 1 10 1 0.025 0.01 0.001
Sunday 1 10 1 10 1 0.025 0.01 0.001
Weekend 1 10 1 10 1 0.025 0.01 0.001
Month 4 10 1 10 1 0.025 0.01 0.001
Quarter 4 10 1 10 1 0.025 0.01 0.001
Seasons 4 10 1 10 1 0.025 0.01 0.001
Calendar years 3 10 1 10 1 0.025 0.01 0.001
* Individual days will be tradable in case of UK-holidays on Monday to Friday; ** Minimum lot size, volume & price tick has been set by the market operator EEX37

Preliminaries tasks for trading
No paperwork for existing EEX user/member - smooth migration
Active gas trader from 2012/13 were automatically setup on Trayport ® ETS
Setup according existing assignment of member to gas markets
Setup according existing assignment of member to trading accesses
Current GV-Portal user/member were setup for Trading Gateway
Current ComXerv/EUREX user/member were setup Gas Direct Screen
Active traders were provided with logins since start of May
Install trading software or map EEX products to Trading Gateway SM
Please use Direct Screen (Global Vision Screen) software on EEX homepage
http://www.eex.com/de/Downloads/Software%20%26%20Installation/EEX-PWX-Gas-Direct-Screen
Please use mapping file for Trading Gateway SM member on EEX homepage
http://www.eex.com/de/Downloads/Software%20%26%20Installation/EEX-PWX-Trayport-ETS
User - executing mandatory withheld tests on Trayport ® ETS
Within 5 days after receiving logins - ensure correct setup on Trayport ® ETS
Participation is tracked by EEX sales team - calls for missing trader
38

Start of Gas Direct Screen
Example: from Windows environment
Via desktop icon
Via Windows start menu
39

Login on Trayport ® ETS
Example: Login on Gas Direct Screen
Enter login
Enter password
40

Market overview window
Example: Market overview on Gas Direct Screen
8 9
1
4 5
2
3
6
7
1
2
3
4
5
Tradable products
Leg order book (here outright NCG)
Spread order book (here GPL/NCG)
Last traded price
Total traded quantity
6
7
8
9
Market status
Contact details for requests
Withdraw buttons (makes own/companies orders untradeable in the system)
Delete buttons (deletes own/companies orders in the system)
41

Enter a price / enter an order
Example: Enter an order in Gas Direct Screen
All or None
Expiry types
Good Till Cancelled
Good till Date
Good for Day
Iceberg order
42

Execute a deal
Example: Execute a deal in Gas Direct Screen
Deal volume
Deal Price
43

Visualisation of orders in Trayport ETS
Example: Order colours for Gas Direct Screen
Explicit order is tradable for everyone
Own order
Implicit order is tradable for everyone
(order calculated/derived from 2 explicit order)
Implicit order is non tradable
Withheld order is non tradable
(deactivated for trading and only visible for order owner )
45

Handling of spreads at Trayport ETS 1/3
Example: Implied offer (Ask-Spread) in spread order book
Slave market
Master market
20,000 10 - 2,000 10
10 22,000
Leg order book
Leg order book
Negative prices
(only possible in spread order books for EEX;
not in legs possible due to EEX rules)
If someone (aggressor) lift the Ask-Spread @ -2 €/MWh
He buys for 20 €/MWh at GPL; sells for 22 €/MWh at NCG
He earns 2 €/MWh
S
S
B
46

Handling of spreads at Trayport ETS 2/3
Example: Implied Bid (Bid-Spread) in spread order book
10 21,000 10 -1,000
22,000 10
If someone (aggressor) hit the Bid-Spread @ -1 €/MWh
He sells for 21 €/MWh at GPL; buys for 22 €/MWh at NCG
He pays 1 €/MWh
B
B
S
47

Handling of spreads at Trayport ETS 3/3
Example: No location spreads in spread order book
Reason for that
Orders on the same side of the underlying legs don’t result in location spreads
48

Implied order at Trayport ETS 1/3
Example: Implied offer (Ask) in leg order book (NCG)
21,000 10 10 -1,000 22,000 10
If someone (aggressor) lifts the implied offer @ 22 €/MWh
He buys for 22 €/MWh at NCG fees only for these trade
In the background he buys for 21 €/MWh at GPL and sells
GPL/NCG spread for -1 €/MWh
S
S
B
49

Implied order at Trayport ETS 2/3
Example: Implied Bid in leg order book (NCG)
10 20,000 1,000 10
10 19,000
If someone (aggressor) hits the implied bid @ 19 €/MWh
He sells for 19 €/MWh at NCG fees only for these trade
In the background he sells for 20 €/MWh at GPL and buys
GPL/NCG spread for 1 €/MWh
B
B
S
50

Implied order at Trayport ETS 3/3
Example: No implied in leg order book
Reason for that
Orders on the same side of leg order and spread order book don’t result in
implied orders
51

Miscellaneous regarding spreads
Spread rules
Derives from at least 2 single order more are possible
Spreads can remain untradeable due to underlying size restrictions (AoN)
If one leg is “protected” with AoN on say 30* lot and the other leg showing only 10
lot, the system will calculate & display the implied price but remains untradeable
Also “Cross trades”, i.e. trading against one self, would appear untradeable
Since the system breaks the spread trade in the 2 respective legs automatically
there will be no “Traded Quantity” (TQty) displayed in the spread order book
It all adds up to the TQty in the single legs
52

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
53

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
54

Agenda
Cooperation in PEGAS – benefits for EEX member
Launch of quality specific gas products on EEX for GY 2013
Open discussion – feedback of the market
Common lunch
Introduction in gas trading via Trayport ® ETS
Open discussion – feedback of the market
Coffee break
Roadmap for implementation
55

Trader Roadmap: Next steps until Go-Live
1. New Trayport logins provided to active EEX traders – ongoing
2. Software installation for Gas Direct Screen or TGW mapping
Software installation
Gas Direct Screen
Pre-configured workbook available
Trayport TGW
Trading member responsible for mapping
User mapping for PGAS & Instrument mapping of EEX
10MW contracts
(Mapping file, Technical documentation and Trayport
Goldmapping available)
Each trader is ask to login & enter mandatory Withheld order !
Voluntary simulation still available please contact EEX sales team
3. If required, please contact sales team for further trading accounts (logins)
4. Also make EEX aware of your shift traders/ dispatchers
5. Register for Order & Trade Alert email service under trading@eex.com
6. Planned Go-Live for PEGAS trading on 29 May 2013
7. Once happy with new Trayport, please cancel ComXerv/ Eurex connection for
EEX gas trading to avoid double connectivity costs after migration period
Software, mapping file and documentation under https://www.eex.com/en/Download/Software%20%26%20Installation
56

Mandatory PGAS “Withheld” Test Order
Every gas trader shall test before the Start of the PEGAS launch!
57

EEX Contacts and Further Information
Sales
Louis Hems
UK Office
Tel.: +44 207 862 7559
louis.hems@eex.com
Tobias Lucht
Office Leipzig
Tel.: +49 341 2156-215
tobias.lucht@eex.com
Roman Zyuzev
Office Leipzig
Tel.: +49 341 2156-211
roman.zyuzev@eex.com
Ling-Lyn Thakker
UK Office
Tel.: +44 207 862 7554
ling-lyn.thakker@eex.com
Member Readiness
Market Supervision
Office Leipzig
Tel.: +49 341 2156-466
technology@eex.com
Office Leipzig
Tel.: +49 341 2156-335
trading@eex.com
More updates under http://www.pegas-trading.com
58

Thanks for your support!
© European Energy Exchange AG