Post by Sapphire Capital on Jul 17, 2008 22:46:28 GMT 4
Milan-based Borsa Italiana has signed an agreement with Italian power market regulator Gestore del Mercato Elettrico (GME) for commercial use of the national single price for electricity (prezzo unico nazionale – PUN).
Borsa Italiana's power derivatives subsidiary IDEX will offer the trading of cash-settled power derivatives based on the PUN settlement price later this year, according to the exchange. The initiative is designed “to attract financial operators and increase market liquidity”.
The first instruments to be traded will be baseload futures contracts with a monthly, quarterly and yearly delivery period. Participants already active in Borsa Italiana’a derivatives market IDEM will have access to IDEX, while the exchange also hopes to attract other established energy traders.
“This agreement will give us the opportunity to broaden further our range of products, giving the Italian industry the possibility to manage the electricity risk price on a regulated market with the benefit of a central counterparty,” says Massimo Capuano, CEO of Borsa Italiana. “The introduction of IDEX will offer operators a transparent forward electricity price and final users a benefit in terms of pricing”.
Borsa Italiana's power derivatives subsidiary IDEX will offer the trading of cash-settled power derivatives based on the PUN settlement price later this year, according to the exchange. The initiative is designed “to attract financial operators and increase market liquidity”.
The first instruments to be traded will be baseload futures contracts with a monthly, quarterly and yearly delivery period. Participants already active in Borsa Italiana’a derivatives market IDEM will have access to IDEX, while the exchange also hopes to attract other established energy traders.
“This agreement will give us the opportunity to broaden further our range of products, giving the Italian industry the possibility to manage the electricity risk price on a regulated market with the benefit of a central counterparty,” says Massimo Capuano, CEO of Borsa Italiana. “The introduction of IDEX will offer operators a transparent forward electricity price and final users a benefit in terms of pricing”.