Budapest, 8 January 2018 – On 3 January, HUDEX, the Hungarian derivative energy exchange was launched as a new market to trade in futures gas and power. In line with its strategy, KELER CCP performs transparent clearing of the natural gas section of HUDEX and wishes to cooperate with further exchanges.
HUDEX, the Hungarian derivative energy exchange was launched successfully last Wednesday, after more than a year of preparation, confirmed KELER CCP, the provider of clearing services to the new exchange.
It was necessary to create this exchange as EU rules require that the so-called derivative energy market products and instruments are traded on regulated market or on MTF as of 2018. Derivative energy market transactions, such as gas market or power market futures trades, even with physical delivery, can be concluded on HUDEX. The natural gas segment of HUDEX plans to launch natural gas products with financial settlement in the spring of this year at the earliest.
Trades made on the natural gas segment of HUDEX are centrally cleared by KELER CCP that also provides central clearing for the Budapest Stock Exchange. Károly Mátrai, KELER CCP CEO said: „Clearing of HUDEX will be transparent and secure, just as on the other markets served by KELER CCP. This is guaranteed by the unique and high-quality infrastructure operated by KELER CCP.”
As of 3 January 2018, the futures contracts with physical delivery earlier traded on CEEGEX and HUPX, the other two energy markets are traded on HUDEX. As a special feature, contracts with cash settlement are traded in the HUDEX power segment, while contracts with physical delivery can be traded in the natural gas segment for the time being. As of January, investment firms that were not allowed previously to trade in these energy products can also become HUDEX members.
KELER CCP is looking for new targets
The cooperation with HUDEX is in line with the short and medium-term strategy of KELER CCP that aims at providing clearing services to as many markets as possible. Károly Mátrai underlined that energy markets and energy exchanges are becoming increasingly important globally, and KELER CCP is progressively involved on these exchanges and markets. The significance of energy markets is demonstrated by KELER CCP’s data based on which the cleared turnover of the spot energy market totaled HUF 490 billion in 2017, it is nearly a twofold increase compared to the turnover registered in the previous year. KELER CCP is on an upward path as shown by the fact that its income in 2017 amounted to HUF 1.35 billion, meaning an increase of 10 %, and it can continue to increase in 2018.
KELER CCP continuously develops its services that provide cost-efficient and unique solution. In this context, in December 2017, after one year of preparatory work, KELER CCP received the approval of the Magyar Nemzeti Bank to clear the forward natural gas products of BRM, the Romanian commodities exchange. Thus, central clearing service on the market is expected to be launched in early 2018, in cooperation with the Romanian partners.
KELER Group
The Magyar Nemzeti Bank and the Budapest Stock Exchange are the owners of KELER Central Depository Ltd. (KELER) that was founded in 1993. With KELER CCP Ltd., its subsidiary, (jointly: KELER Group), they form the infrastructure to ensure the smooth operation of the Hungarian capital and energy markets. KELER, as the only central securities depository of the Hungarian capital market, provides the infrastructure for Hungarian securities issuance, the settlement of Hungarian securities transactions. KELER CCP as clearing house ensures secure and transparent trade clearing: it substitutes the clients involved in the contracts concluded in one or several financial markets. It acts as buyer to all sellers and as seller to all buyers by acting as the only counterparty to all of them and guaranteeing trade settlement. KELER CCP as clearing house complies with the strictest European requirements, and provides clearing services to the Budapest Stock Exchange’s derivatives and securities markets, MTS Hungary government trading platform, CEEGEX Central Eastern European Gas Exchange, HUDEX Hungarian Energy Derivative Exchange and the Trading Platform, the Hungarian balancing gas market, and provides general clearing member services on HUPX, the Hungarian organized power trading market, the German, French, English, Dutch, Northern Irish, Czech and Serbian power markets, and the Austrian gas market.
An innovative service provider with reliable professional and IT background, corresponding international practice, Hungarian and international regulations, the KELER Group builds on its stable shareholder background and capital position when serving its clients, takes into account the present and future needs of market participants and forms an interest group with market players. Its objective is to become a key player in the regional and the European markets by relying on market and service innovation.
Contact: 