IBEX PRESENTATION AND ROLE ON THE POWER MARKET Четири години успешна работа с институции и пазарни участници.

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Pearl Spencer
5 years ago
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IDM MODEL Механизми на търговия, срокове и търгувани продукти. Управление на риска, сетълмент и фактуриране. Подкрепа на ликвидността. OPERATIONAL RULES OF THE NEW MARKET SEGMENT.

3 СЪДЪРЖАНИЕ IBEX PRESENTATION AND ROLE ON THE POWER MARKET Четири години успешна работа с институции и пазарни участници. THE POSITION OF THE NEW MAKRET SEGMENT - IDM Completion of the IBEX portfolio with the shortest term market with physical delivery. Advantages and potential for the market participants. IDM MODEL Механизми на търговия, срокове и търгувани продукти. Управление на риска, сетълмент и фактуриране. Подкрепа на ликвидността. OPERATIONAL RULES OF THE NEW MARKET SEGMENT. REGISTRATION PROCESS LAUNCH The new structure of the IBEX Rule book for IDM and DAM segments. Start and stages of the registration process. TRADING PLATFORM SSO (Single sign on) access and trading screen organization. The most advanced technologies implemented and the full (Cross Border Intraday) compatibility.

4 IBEX at a glance

5 IBEX at a glance Independent Bulgarian Energy Exchange EAD (IBEX) incorporation as fully owned subsidiary of BEH EAD (Bulgarian Energy Holding) Day Ahead Market (DAM) segment launch, based on the Nord Pool Spot trading platform and service provision IBEX signed a contract with Nord Pool Spot for implementation of the Intraday market (IDM) segment in Bulgaria. January 2014 March 2014 January 2016 October 2016 March 2017 FEBRUARY JUNE IBEX obtained a license for power exchange organization for electricity as per the Energy Act. CMBC segment launch, based on the Trayport GV trading platform.

6 IBEX at a glance FEBRUARY 2018 Go-live of the Pan European IDM coupling project - XBID with 10 LIPs. Q JUNE 2018 Launch of the IDM registration procedure

7 THE POSITON OF THE NEW SEGMENT - IDM

8 THE IDM POSITION ON THE ELECTRICITY MARKET(1) YEARS, MONTHS, WEEKS DAY AHEAD HOURS, MINUTES REAL TIME CMBC Market Segment DAM market segment IDM market segment Balancing market Concluding deals on IBEX Electricity System balancing by the TSO (ESO EAD)

9 THE IDM POSITION ON THE ELECTRICITY MARKET(2) IDM Market segment The short term market with physical delivery (IDM), completing the IBEX portfolio Next steps: Cross border intraday trading (nominations). Market integration through XBID project.

10 THE IDM POSITION ON THE ELECTRICITY MARKET(3) Reasons for IDM existence DAM and Balancing market monthly average prices in BGN/MWh 350 лв. 334, лв. 250 лв. 200 лв. 150 лв. 100 лв. IDM 196,09 187,32 106,40 75,73 62,25 171,57 163,58 165,70 166,16 175,96 185,87 IDM IDM IDM 176,85 178,94 191,54 68,29 70,86 68,32 82,49 75,15 73,90 81,25 82,36 75,07 50 лв. 0 лв. 11,25 4,89 8,93 16,49 13,83 17,31 16,27 13,89 16,03 14,52 17,57 11, Deficit Surplus DAM

THE IDM POSITION ON THE ELECTRICITY MARKET(4) Reasons for IDM existence The balancing market price for deficit is 2,5 times higher than the DAM price on average, while the respective surplus price is

11 THE IDM POSITION ON THE ELECTRICITY MARKET(4) Reasons for IDM existence The balancing market price for deficit is 2,5 times higher than the DAM price on average, while the respective surplus price is about 5 time lower than the DAM one. The difference illustrates the market logic for the IDM existence. The participation of the generations with complex forecasting RES. Expected average liquidity for 2018 on IDM 50 MWh/h.

12 THE IDM POSITION ON THE ELECTRICITY MARKET(5) SIDC (single intraday coupling) through XBID TSOs Pre-coupling systems XBID SOLUTIONS - Trading module - Shipping module - Capacity management module TSOs post Coupling systems Shipping systems Clearing systems PXs trading platforms Market participants

13 THE IDM POSITION ON THE ELECTRICITY MARKET (6) SIDC (single intraday coupling) through XBID PXs trading platforms Market participants Clearing systems Based on Deutsche Boerse solution( PCR). Starting with 10 LIPs (local implementation projects). Planned Go-live for XBID Implicit crossborder capacity allocation and continuous trading.

14 IDM model

IDM model (1) IDM trading platforms Markets operated with NORDPOOL platforms Markets operated with EPEXSPOT platforms Markets operated with GME

15 IDM model (1) IDM trading platforms Markets operated with NORDPOOL platforms Markets operated with EPEXSPOT platforms Markets operated with GME platforms NORDPOOL Markets operated with OMIE platforms Markets with different own platforms NORDPOOL POLPX EPEXSPOT OTE EXAA OKTE HUPX OPCOM GME IBEX OMIE EPIAS

16 IDM model (2) Opportunities for the market participants 24 h Different order types LIMIT, FOK, IOC, ICEBERG 60 min

17 IDM model (3) Opportunities for the market participants Common collateral DAM IDM COMMON RISK MANAGEMENT AND SETTLEMENT / COLLATERAL PLATFORM WITH DAM

18 IDM model (4) Opportunities for the market participants IBEX IS ACTING AS A CCP TO ALL TRANSACTIONS CONTINUOS TRADING OPPORTUNITIES FOR ARBITRAGE WITH OTHER MARKET SEGMENTS AND RES INTEGRATION

19 IDM model (5) Opportunities for the market participants Regulation on Wholesale Energy Market COMMON REMIT REPORTING PLATFROM Integrity Transparency

20 IDM model (6) IDM market segment characteristics

21 IDM model (7) IDM market segment characteristics XBID compatibility. Offering currency EUR. Continuous trading mechanism. CCP role and sole party for nominations towards the TSO. Common settlement platform CASS. PRODUCTS PARAMETERS 24 hourly products with 60 min. GCT Gate opening for D 14:00 CET GCT for nominations- 45 min. before delivery Other characteristics: Trade lot: 0.1 MW Tick Size: EUR 0.1/MWh Price range: /+9999 Trading currency: EUR (EURO) Order Types: Limit, IoC, Fill-or-Kill, IBO

22 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 IDM model (8) IDM open for trading products D - 1 D day Always there are between 9 and 32 open for trading hourly products IDM product cycle Before 14:00 CET only the products for the current day are tradable Tradable in D-1 products Tradable in D day products Tradable in D+1 products

IDM model (9) IDM benefits and challenges BENEFITS CHALLENGES Possibilities for forecastable imbalances trading. Explicit crossborder intraday trading. Reduction of balancing costs.

23 IDM model (9) IDM benefits and challenges BENEFITS CHALLENGES Possibilities for forecastable imbalances trading. Explicit crossborder intraday trading. Reduction of balancing costs. RES energy trading. IDM Linking of the surplus / deficit imbalancing prices with the DAM prices. Implicit crossborder trading - XBID. Possibilities for LIP s joining and, thus, XBID joining with the third wave

Certain DAM price gap, defining the validity of the commitments.

24 IDM model (10) Liquidity support MARKET MAKER frame contract Minimum offered quantity for purchase and sale for each hour. Predefined daily profile. Maximum spread between the best bid and best ask. Certain DAM price gap, defining the validity of the commitments. All contract conditions according to the published template. Announcement of the Market Maker s name on the IBEX web page. Up to 70 % discount on the turnover fee.

25 IDM operational rules

26 IDM operational rules (1) Rule book structure Power Exchange Operational Rules, DAM and IDM segments Terms Participation Agreement Application for registration on the power exchange market IBEX Tariff Operational rules, IDM segment Operational rules, DAM segment Settlement rules, DAM and IDM segments Market conduct rules Product specifications Product specifications Bank Guarantee (BG) Instructions for operation of ETS-ID Instructions for operation of ETS-DA BG eligibility criteria Application for additional portfolio Application for additional portfolio Application for collateral release Market Maker frame contract Contract for data provision Collateral calculation model DAM and IDM

IDM operational rules (2) Rule book structure Operational rules, IDM segment Product specifications Instructions for operation of ETS-ID - Common General rules (General terms) DAM and IDM.

27 IDM operational rules (2) Rule book structure Operational rules, IDM segment Product specifications Instructions for operation of ETS-ID - Common General rules (General terms) DAM and IDM. - Common Settlement rules. - Common Application for registration. - Common Participation agreement. - Common Market Conduct rules. Application for additional portfolio Market Maker frame contract

28 IDM operational rules (3) - Common Membership fee. - Common collateral on DAM and IDM; - Two tariff structure for lower entry barriers on IDM. Fees Value

Training of the respective responsibles for trading from the company

29 IDM operational rules (4) Registration procedure 5. Register entry and start trading 4. Posting of collateral 3. Training of the respective responsibles for trading from the company 2. Participation agreement for DAM and IDM and fees payment 1. Application for registration

30 IDM operational rules (5) Registration procedure Trading responsibles indication only. No amendments of the existing collateral. No additional Participation agreement signing. Faster training. Access to the trading platform and trade.

31 Trading platfrom IDM ETS

32 Trading platform IDM ETS (1) Platform access SSO (SINGLE SIGN ON) and 2 FACTORS AUTHENTICATION What is this? How it works?

33 Trading platform IDM ETS (2) Platform access Which are the alternatives?

34 Trading platform IDM ETS (3) Organization of the trading screen ORDER DEPTH and TRADING HISTORY section MARKET INFORMATION section MY ORDERS and MY TRADES section TICKERS section

Trading from several portfolios simultaneously.

35 Trading platform IDM ETS (4) The most advanced technologies and full XBID compatibility Trading in several market zones simultaneously. Trading from several portfolios simultaneously. Each visible order could be traded. Different Work spaces for different user preferences.

36 IBEX EAD INDEPENDENT BULGARIAN ENERGY EXCHANGE

Work shop: Bulgarian Energy Exchange What, How и When? Panel I -

Work shop: Bulgarian Energy Exchange What, How и When? Panel I - Panel II - Panel III - Project status, trading principles and main activities; Trading platform, settlement and risk management; Discussion;