The launch of the Financial Instruments Market is a natural next step in TGE’s development and broadens its product offering in response to market demand. The power market, which is the underlying market for the futures contract, has achieved high liquidity which enables the trade in derivative instruments by its participants.
The growing volumes on TGE markets over the last years make one of the fastest growing exchanges in Europe and the most dynamically developing exchange in the CEE region. In 2015, the total volume of trade in TGE's electricity markets with physical delivery reached 186.7 TWh, while the domestic electricity production was equal to 161.8 TWh and the domestic consumption was at the level of 161.4 TWh.
The principles of the operation of the Financial Instruments Market at TGE are essentially the same as those that have been for many years in effect on the futures market of the Warsaw Stock Exchange (GPW).
The derivative financial instruments available at TGE, above all, enable the following:
• a one-stop-shop for the organisation of energy policy
• better management of buy and sell portfolio
• hedging against energy pricing risk without a need to take a position on the physical market.
The eligibility to become a member of the TGE's Financial Instruments Market is restricted to domestic and foreign investment companies and other companies which buy and sell financial instruments on their own behalf and account, provided that they meet the conditions for trading on a regulated market.
The settlement and clearing of transactions concluded on the TGE's Financial Instruments Market takes place in accordance with the principles defined by the Warsaw Commodity Clearing House (IRGiT).
We encourage you to read the materials related to the TGE's Financial Instruments Market.