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Romania's new OTC platform may face technical delays - traders

26 Sep 2013 17:09:10 | edem


Romania’s new over-the-counter (OTC) centralised electricity trading platform may face technical delays, traders warned.

When the project for the platform was officially approved in July, the Romanian Association of Electricity Suppliers said it will launch on 1 January 2014 ( see EDEM 29 July 2013 ).

However, OPCOM’s head Victor Ionescu reportedly said that 1 February 2014 was the new deadline during a conference on market liberalisation on Wednesday, a source present at the conference told ICIS.

“But I’m a bit sceptical, [Ionescu] has been talking about it for a year now,” the source said, adding that no additional details about the stage of preparation were given.

OPCOM was unable to confirm the information by Thursday evening as ICIS went to press. But traders who have been involved in the preparation process confirmed that delays were possible, owing to technical reasons.

“OPCOM wants something that Trayport [the platform provider] doesn’t normally provide, so Trayport needs to have an extra feature and it takes money to programme,” one of them said.

He explained that the feature should help with sleeve deals, as the platform won’t be supported by brokers. So the software should be able to automatically exclude choice prices, which are usually taken off manually by the brokers.

Project development

The project has gone through a lot of discussions and modifications since plans for its development were announced in September 2012 ( see EDEM 21 September 2012 ).

Initially, energy regulator ANRE was against certain trading rules, such as the rule about each participant defining their own list of eligible counterparties ( see EDEM 30 April 2013 ).

The platform will come as a response to traders’ active lobbying after ANRE officially banned trading outside of OPCOM ( see EDEM 18 September 2012). However, the trading platforms currently offered by OPCOM did not meet traders’ needs. Irina Peltegova

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