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Turkey’s PMUM looking to expand electricity exchange platform offering

08 Dec 2011 12:35:35 | edem

Turkish electricity exchange PMUM is looking to offer a raft of new trading platforms to complement the recently launched Day-ahead exchange, a source close to the bourse said.

On 1 December, market participants switched from trading on a transitional Day-ahead for planning outfit to a fully-fledged bourse that now operates according to supply and demand logic (see EDEM 29 November 2011).

However, PMUM is now in the process of developing an intra-day market, as well as devising an auction platform and a screen for over-the-counter (OTC) trading, the source added.

Electricity companies, as well as the operator itself, are keen to describe the intra-day market as a "necessary addition" to the new Day-ahead exchange, as participants - in particular those with renewable generation - will be seeking to accommodate their short-term forecasts.

"We are hoping to launch this platform as early as May 2012," the source said.

He added that PMUM was keen to launch the intra-day bourse by itself, although high-profile European exchanges such as EEX are thought to be interested in developing the platform.

There are also plans for an OTC screen that may allow counterparties to trade bilaterally. All major European brokers are investigating the possibility of offering similar products for OTC trading in Turkey.

Finally, PMUM is considering the option of offering an auction platform for physical monthly forward contracts.

Participants polled by ICIS Heren welcomed PMUM's active interest in helping to whip up liquidity on the Turkish electricity market.

However, they did insist any initiative should be thoroughly researched before being launched, to avoid any distortions. AS

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