Poland's new OTC trading platform to launch in 5 days
A Polish broker WSEInfoEngine will launch an over-the-counter (OTC) electricity trading platform on 15 October, the company said on Thursday. Twelve companies have lined up to join the new platform, according to one trading source.
Participants on the platform will be able to trade electricity for Baseload and Peakload contracts for Day-ahead, weekend, week-ahead, front month, quarterly and front year delivery.
Companies can also trade certificates of origin with week-ahead, month-ahead and three-years ahead delivery.
The platform will provide an alternative to the existing POLPX exchange as well as international brokerage TFS, which sources say have the business of Poland’s biggest power traders.
Polish law forces power generators to sell 50% of the energy they produce on POLPX, down from 100% when the legislation was launched in 2009 ( see EDEM 3 December 2009 ).
Both WSEInfoEngine and POLPX are owned by the Warsaw Stock Exchange, which in turn is state-owned. This could mean traders will be obliged to trade via WSEInfoEngine to avoid paying commission to foreign brokers, one trader said.
Most traders thought the new platform would boost overall liquidity in the market and attract new partipants, but also take market share from POLPX and TFS.
But some sources doubted Polish power trade is deep enough to provide liquidity to both platforms as well as to the brokered market. This could fragment liquidity and make it harder to trade. Karolina Zagrodna
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