As the sole central counterparty in Hungary, and the first in the region to receive its EMIR licence, KELER CCP Ltd. has been playing a prominent role in the European and regional capital markets for more than two decades and on the energy markets for more than 8 years respectively. The clearing and guarantee undertaking services provided ensured that KELER CCP has been following a path of continuous development, primarily due to the growth of the energy market, but the capital market clearing services offered by KELER CCP also contributed to the sustainable growth of the company.
The strategic goal of KELER CCP is to act as a regional central clearing service provider by relying on the clearing house expertise acquired in the past years. KELER CCP provides services in the capital and gas markets as a central counterparty, and since 2010, it has been providing general clearing member services in the energy markets cleared by European Commodity Clearing (ECC), Germany.
Looking at the figures of 2017, KELER CCP realized HUF 1.4 billion income from services, an increase of 8.4 % compared to the previous period, while the result of the subject year exceeding HUF 185 million is more than twice the planned figure. The clearing fees of energy market transactions represented a large part of the fee income from services. The number of KELER CCP clearing and non-clearing members continued to increase, mainly due to the increasing number of participants in the energy and gas markets: there were 138 members from 23 countries, including 32 capital market clearing members, 39 gas market clearing members, and 79 energy market non-clearing members.
It is worth getting acquainted with the energy market service as it is the driver of dynamic growth. As a general clearing member of ECC, KELER CCP offers energy market non-clearing member service to energy market traders. As a general clearing member, KELER CCP assumes responsibility for the settlement of specific energy market transactions toward ECC and the energy market non-clearing members. It is emphasized that in order to provide a safe non-clearing member service, the general clearing member needs to have an own risk management function, appropriate account relationships, and needs to create and operate secure data processing.
KELER CCP offers energy market non-clearing member service in the following markets:
- HUPX (HUPX Hungarian Power Exchange),
- HUDEX/Power (HUDEX Hungarian Derivative Energy Exchange),
- EPEX SPOT (European Power Exchange),
- EEX (European Energy Exchange),
- Powernext/PEGAS (Powernext/Pan-European Gas Corporation),
- PXE (Power Exchange Central Europe),
- SEEPEX (SEE Power Exchange),
- SEMOpx (SEMO Power Exchange).
In 2018, KELER CCP started preparations in time as the start of SEMOpx, the exchange of spot power trading in Ireland and Northern Ireland was announced, and after the start of this market in the autumn of 2018, 4 Irish non-clearing members joined KELER CCP. Thus, a market share of nearly 10% was achieved in the Irish exchange with 40 traders.
The energy market dynamics of KELER CCP defined not only the last year, but 2018 also. In 2017, KELER CCP cleared a spot market turnover of HUF 491.5 billion (41.7 TWh), while the turnover in the first three quarters of 2018 increased by 28% compared to the volume cleared in the same period of the previous year. In 2017, the clients of KELER CCP concluded transactions on the futures markets in the amount of HUF 280.5 billion (26.5 TWh), and the first three quarters of 2018 saw an outstanding turnover increase of 252% compared to the same period of the previous year.