Serbia: SEEPEX power exchange, settlement via ECC

21. January 2016. / News Serbia Energy

The Physical Settlement of Serbian Power Spot SEEPEX transactions will be provided by ECC’s Luxembourg-based subsidiary – European Commodity Clearing Luxembourg S.à r.l. All contracts are physically fulfilled at the Serbian TSO EMS.

Serbia based SEEPEX power exchange, founded by joint venture partners Serbian TSO Co EMS Elektromreza Srbije and French EPEX SPOT, agreed the clearing services for its spot market transactions with German based European Commodity Clearing company.

As of November 2015, ECC will launch clearing services for Power Spot market transactions concluded on the Southeast European Power Exchange (SEEPEX) Serbia. All contracts are physically fulfilled at the Serbian Transmission System Operator EMS (Elektromreža Srbije).

Transactions concluded at SEEPEX are imported into the ECC clearing system immediately after their conclusion and will be integrated into the standard ECC settlement processes and reporting reads the ECC statement.

Spot market transactions can be retrieved via the ECC Member Area approx. 10 min after the conclusion of the trades.

Financial settlement takes place on every ECC business day. Together with other spot transactions on power, gas and emission allowances the commodity values of the transactions concluded at SEEPEX are netted out into one net payment amount per Clearing Member/ trading participant.

Payments are processed at around 8 a.m. CET before market opening on TARGET2 operating days via the Clearing Member’s TARGET2 account.

The accounting cut-off is at 4:00 p.m. (CET). All trades concluded until 4:00 p.m. on the current day are settled on the next ECC business day (Payment Group EUR_1600). Trades concluded after 4:00 p.m. are settled on the following ECC business day (T+2) reads the ECC instruction paper.

The Physical Settlement of Serbian Power Spot transactions will be provided by ECC’s Luxembourg-based subsidiary – European Commodity Clearing Luxembourg S.à r.l. All contracts are physically fulfilled at the Serbian TSO EMS.

Nominations by ECC to the Serbian transmission system operator EMS are made after the auction results have been forwarded and confirmed by SEEPEX. In the event of differences which arise or remain, the binding nomination (schedule report) by ECC is valid (priority rule) and has to be taken into account by the respective counterparty.

Exposures from transactions will be included in the time series of exposures used for daily calculation of the Initial Margin Spot Market (IMSM) and will be included in the Current Exposure Spot Market (CESM) as well. The exposures will be netted with exposures from all other spot market transactions providing full cross-margining effects across all cleared spot venues of ECC. The margin requirement is listed in the Eurex Report CC050 and will be contained in corresponding margin classes “IMSM” and “CESM” reads the ECC statement.

SEEPEX official expect that the power exchange will gather more than 20 traders in the first phase nov-dec 2015. SEEPEX expectations for 2016 are ambitious trading volumes and competition to existing regional-national exchanges, transmits Serbia-energy.eu

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