N2EX, the UK power market jointly operated by NASDAQ OMX Commodities and Nord Pool Spot, has announced that it will introduce a seven day auction from 7 December 2012.
With market coupling to be launched in the North-West Europe region in 2013 (“NWE Market Coupling”), the N2EX day-ahead auction needs to synchronize with European standards.
In addition, since Nord Pool Spot has been appointed the GB Virtual Hub developer and operator for the IFA cable, N2EX is required both to run a seven day auction and, in due course, to co-ordinate gate closure with the wider Europe. The move to a seven day auction cycle is the first step in this standardization process.
Under the new N2EX auction cycle, single daily auctions will be held every day at 09:30 UK time, with auction results published at 09:40 UK time every day, 10 minutes after gate closure.
In due course NWE Market Coupling will require a change of gate closure time at N2EX from 09:30 to 11:00 UK time. The precise date of this change will be decided once a formal launch date for NWE Market Coupling has been announced. The N2EX Market Council anticipates that this change will be implemented shortly before the launch of NWE Coupling
Announcing the change, Mikael Lundin, CEO of Nord Pool Spot, said: “N2EX is the spot exchange of the UK today, with daily turnover of more than 300 GWh, amounting to about one third of the UK’s energy consumption. N2EX will have an important role to play in the North-West Europe market coupling project and as such we are determined to ensure that we have everything in place within the UK power market to ensure that that vital project is a success.”
Geir Reigstad, President at NASDAQ OMX Commodities, added: “We are working closely with N2EX members to ensure a smooth change to seven day auctions and look forward to a continuation of the increased trading volumes and liquidity which we have seen in N2EX in recent weeks. In addition, this will intensify NASDAQ OMX Commodities’ focus on the power derivatives to ensure that volumes will increase in this segment of the UK power market as well.”
For further information, please contact N2EX:
Emma McKiernan, Client relationship Manager, N2EX: +44 7887 744 700 emma.mckiernan@npspot.com
Media contacts:
Stuart Disbrey, Communications Manager UK, Nord Pool Spot AS, phone +44 7887 409 044, stuart.disbrey@npspot.com
Sara Aadnesen, Director Corporate Communication, NASDAQ OMX Commodities, phone +47 9060 0759, sara.aadnesen@nasdaqomx.com
About N2EX
N2EX is the name of the UK power market offering from Nord Pool Spot and NASDAQ OMX Commodities. NASDAQ OMX Clearing is the authorized clearinghouse.
The web site www.n2ex.com provides market information and documentation for the UK power market.
About Nord Pool Spot
Nord Pool Spot runs the leading power market in Europe and offers both day-ahead and intraday markets to its members. 350 companies from 20 countries trade on the market. The Nord Pool Spot group has offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. In 2011 the group had a total turnover of 316 TWh, which includes the auction volume in the UK market N2EX.
For more information, visit www.nordpoolspot.com.
About NASDAQ OMX Commodities
NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.
NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.
NASDAQ OMX Clearing is the trade name of NASDAQ OMX Stockholm AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
NASDAQ OMX Commodities has nearly 350 members from over 15 countries covering a wide range of energy producers, consumers and financial institutions.
For more information, visit www.nasdaqomxcommodities.com.
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