The European Energy Exchange (EEX) and POWER EXCHANGE CENTRAL EUROPE (PXE) have signed an agreement in Prague today, by which the parties will enter into a closer cooperation. In doing so, EEX will become the new majority shareholder, acquiring 66.67 % of PXE shares. This transaction will be settled in cash from EEX own resources and is expected to be closed by the end of the first quarter 2016, subject to approval by the competent authorities.
EEX Group provides the central market platform for energy and commodity products which includes contracts for Power, Natural Gas, Coal, Oil, Environmental Markets, Freight, Metals and Agricultural Markets listed at EEX, EPEX SPOT, Powernext, Cleartrade Exchange (CLTX) and Gaspoint Nordic. In addition, the clearing house European Commodity Clearing (ECC) is part of the Group. Currently, EEX Group has more than 450 trading participants with offices in 13 locations worldwide.
As part of CEE Stock Exchange Group (CEESEG), PXE offers power derivatives products in the Czech Republic, Slovakia, Hungary, Poland and Romania. In addition to this, through their cooperation with CEGH Gas Exchange of Vienna Stock Exchange, it operates the Czech gas spot and derivatives market. PXE has been cooperating with EEX Group since 2012 via the Group’s clearing house ECC, which provides clearing and settlement for the Prague-based exchange. PXE holds licenses as a commodity exchange from the Ministry of Industry and Trade and a regulated market license issued by the Czech National Bank and is supervised by both authorities.
By joining forces, both companies aim to further develop the power derivatives market in Central and Eastern Europe. Customers will benefit from the partnership as it complements the European product offering, increases the member base and improves trading opportunities.
Peter Reitz, CEO of EEX, says: “PXE is a key player in the Central and Eastern European markets. With PXE being part of EEX Group, we will be able to expand our existing product offering to these markets, adding additional members and improving cross-border trading for the participants, which contributes further to the integration of European markets.”
David Kučera, Secretary general of PXE, adds: “We are looking forward to continuing our successful cooperation which we already had with ECC and shift it to the higher level. By having EEX as a strong corporate partner, we are able to provide our members with improved trading opportunities and synergies. Partnership with EEX is a clear sign that our ambition to create a strong regional platform is succeeding and teaming up with EEX makes our position within the region even stronger.