HomeWorld RegionsEuropeLeipzig and European Energy Exchange to merge early 2002

Leipzig and European Energy Exchange to merge early 2002

Officials representing the Leipzig Power Exchange GmbH and European Energy Exchange AG told reporters this week that a merger will be carried out in early 2002.

The new exchange, to be based in Leipzig, will be called European Energy Exchange AG (EEX). Shareholders of the two bourses are to approve the merger in mid-December.

At the press conference, officials said they want the new exchange to become Europe’s leading bourse for spot and energy derivatives trade. There will be about 90 participants in nine countries initially.

It will carry existing LPX and EEX products, including an auction-based day-ahead market and block trade. Both the LPX Sapri and EEX Xetra systems will be used. Hourly auctions using the Xetra will be stopped, however, in the interests of concentrating liquidity, while continuous block trade will only be carried out on the Xetra system.

It will carry existing LPX and EEX products, including an auction-based day-ahead market and block trade. Both the LPX Sapri and EEX Xetra systems will be used. Hourly auctions using the Xetra will be stopped, however, in the interests of concentrating liquidity, while continuous block trade will only be carried out on the Xetra system.

For futures trade, the partners aim to introduce a joint trading concept based on the Eurex System used by EEX currently. EEX has operated a futures market since March, and the LPX had intended to launch its own before the end of this year. But this plan has now been ditched in favour of a single futures market. LPX and EEX aim to expand the current EEX forwards palette, adding quarterly futures by the end of the year. Settlement prices are to be based on the auction market.

EEX Executive Manager Hans Schweickhardt and LPX Chairman Carlhans Uhle will jointly run the merged bourse. We want to use the synergies which we realise with that merger for establishing new markets and services,” Schweickhardt said.

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