The European Energy Exchange (EEX) plans to offer trading in Agricultural Index Futures contracts as of May 2015, the introduction is subject to the EEX Exchange Council’s approval. At present, these products are listed at Eurex Exchange.
The migration of the existing open positions in agricultural derivatives products to the European Commodity Clearing (ECC) is scheduled for 8 May 2015 after close of trading. ECC will provide clearing and settlement of all these products in the future. Trading at EEX is supposed to start on 11 May 2015.
In order to support and to further develop the agricultural product segment, EEX will establish a new department to be headed by Sascha Siegel from 1 January 2015. At present, Sascha Siegel is Vice President, Product Research & Development at Eurex in Frankfurt, where he has built up the agricultural product portfolio since 2009 and accompanied its development as a product manager.
EEX will take over the current Eurex product offering comprising cash-settled futures on butter, hogs, piglets, potatoes, skimmed milk powder and whey powder. The product specifications, the level of the transaction fees and the trading system will not be affected by the migration. Furthermore, EEX will ensure that customers trading in agricultural products do not incur any additional costs for the exchange membership. To this end, EEX is planning to introduce a specific “Agricultural Products” membership category, which will be offered free of charge. EEX will not charge fees for the technical connection during the first 12 months.
“The integration of agricultural products into EEX Group gives participants in this market the opportunity to trade a broad range of commodities via one platform. We want to make a long-term commitment on this market and plan to expand the product portfolio in close cooperation with the agricultural sector and the food industry”, explains Peter Reitz, Chief Executive Officer of EEX.
Liam Fenton, Branch Manager of INTL FCStone LTD., Dublin, which has been active since 2010 in Agricultural Index Futures contracts on Eurex, comments: "The migration of agricultural products to EEX is attractive to us because it gives us access to a wider range of commodities on one exchange platform. In addition to trading agricultural products, we will also be able to offer complementary products such as fertilizer, electricity or natural gas to our customers and continue to build on our dairy market business.”
The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal and guarantees of origin are traded. Through its majority shareholding in Cleartrade Exchange (CLTX), EEX additionally offers the markets for freight, iron ore, fuel oil and fertilisers. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing (ECC). EEX is a member of Eurex Group.