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First-ever Turkish OTC electricity deal brokered - counterparty

17 May 2012 14:38:40 | edem


The Turkish electricity market reached a milestone on Thursday, as two counterparties are firming up the first-ever over-the-counter (OTC) deal on a broker's screen, ICIS has learnt.

The trade, brokered by a London-based firm, is for 5MW of June Baseload, and the price was Turkish lira (TL) 134.50/MWh (€57.95/MWh). The last ICIS assessment for the contract stood at TL135.00/MWh. ICIS understands that the broker involved is Tradition, formerly TFS. However, Tradition was not prepared to comment before this article was published.

The seller said the trade had gone through, insisting there were a few clerical details that had to be sorted out before the full details could be released to the public. The deal was rumoured to be concluded by phone, but would be published to the broker's screen.

"It's a great success," the seller told ICIS. "The counterparty is one of the more conservative Turkish companies, but they have a very good record. I myself was very surprised to see that the deal went through. It's a great achievement for all of us."

ICIS has been assessing standard contracts on the Turkish OTC market since 3 March 2011, reporting on the bilateral and bespoke deals concluded between counterparties. However, the first brokered deal has been eagerly awaited as a sign that a more liquid market is set to develop.

Market participants were originally confident that standardised OTC products would trade last year (see EDEM 7 September 2011), following the launch of a standard European Federation of Energy Traders (EFET) agreement last July (see EDEM 20 July 2011).

All European brokers have set up a screen in anticipation of developments on the country's market, but deals have remained elusive, as participants could not reach any common ground.

Tradition's Turkish screen has been ready since last March, with other brokers, including ICAP and GFI, also actively developing their Turkish business (see EDEM 2 March 2011). AS

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