LONDON, U.K., Jan. 26, 2001 (BUSINESS WIRE)à‚–Automated Power Exchangeà¯¿½ Inc. (APXà¢â€ž¢) announced that Andrew Claxton has been appointed UK Managing Director to spearhead APX’s preparations for the launch of NETA on 27 March 2001.
Claxton, formerly Chief Executive of the Electricity Pool, joined APX as Vice President of European Business Development in May last year. Per Hjorth, former Chief Executive of Nordpool, will retain overall responsibility for APX’s operations in Europe.
APX is well-advanced in simulating and testing its on-line, day-ahead spot market and its ECVNA Contract Notification Service. The latter provides a fast, efficient and reliable system for traders to notify contracts to NETA and eliminate duplication and errors.
APX will start off with half-hourly spot contracts, with the exchange operating from the day ahead to 30 minutes before “gate closure.” APX is also seeking an SFA licence prior to “go live” that will permit it to offer longer-term, exchange-traded, forward contracts should there be market demand. APX will run its internet-based exchange in the UK as a 24×7 operation, with simultaneous backup on three servers in London, Leeds and Frankfurt.
APX has been running regular simulations and training days to help participants develop their trading strategies, train personnel and analyse operational issues. To date, over 350 participants from 61 organisations have participated in these trials and industry feedback has been very encouraging.
à¯¿½ Roy Dinsmore of Innogy Energy Marketing says, “Innogy has been actively using APX Trading software to familiarise key personnel with the issues likely to be encountered by participants in the power market following the introduction of NETA.”
à¯¿½ Centrica say “Centrica has found the APX power exchange facilities and simulations very useful in building knowledge of the NETA processes in preparation for Go-Live.”
To further stimulate interest, APX will be running a weekly trading competition, the “APX Trading Challenge,” from 1 February 2001. Generators and suppliers will compete to maximise profits, and prizes will be awarded with the names of the winners circulated to the press. (For more details contact Carole Crane of APX on 020 7647 9780).
APX’s Spot Market service is available from 5 February 2001 during pre-production for use by all participants. Contract Notification APX was the first UK power Exchange to announce a 3rd party ECVNA service in the autumn of last year.
Already running in the U.S.A, the APX Contract Notification Service is a proven platform for reducing and eliminating risks:
à¯¿½ Traders are able to see and confirm all deals in advance to minimise risk of – potentially very expensive – notification mistakes.
à¯¿½ APX assumes liability for the notification once the trading parties have entered the deal on our systems and received confirmation.
à¯¿½ Both trading sides gain from a low cost, reliable service that can be seamlessly integrated with their middle and back office.
à¯¿½ APX’s service will be available 24 hours a day, right up to 30 minutes before gate closure.
APX’s ECVNA Service has completed NETA qualification testing and is available during pre-production for use by all participants.
Commenting on APX’s state of readiness, Claxton said, “These are exciting times for the UK power industry. There is still uncertainty relating to such issues as spot trading volumes and liquidity, but we are well-placed to help participants make the most of the new market and to minimise risks associated with contract notification. Our programme of spot market and ECVNA simulations re-commenced on 25 January and will run on a weekly basis with the APX Trading Challenge running from 1 February. This is an ideal opportunity for participants to test their systems and skills in readiness for ‘go live.”‘