With the enforcement of MiFID II on 3 January 2018, EEX and Powernext will transfer their non-MTF offering for power and natural gas into Organised Trading Facilities (OTFs).
The implementation is subject to approval by the respective competent authorities. The existing regulated markets of the exchanges remain unchanged.
“Like the existing Non-MTF markets operated by EEX and Powernext, the new OTF offering will provide a solution for market participants wanting to trade power and gas contracts with the characteristics ‘can’ or ‘must be physically settled’ on a discretionary trading venue, while preserving the high level of transparency and supervision which are currently in place for the regulated markets of EEX Group,” says Dr Tobias Paulun (pictured), Chief Strategy Officer of EEX. “The OTF markets enable participants who wish to fulfil their positions physically to trade without fulfilling requirements that had been originally designed for financial markets.”
Within the transition, all current Non-MTF products will become OTF products. EEX and Powernext will list financial as well as non-financial instruments on the OTF markets. Products on the OTF which “can be physically settled” will be classified as financial instruments while products which “must be physically settled” will be classified as non-financial instruments according to MiFID II, the latter being exempt from certain obligations of MiFID II and other financial regulations.