Natural gas distribution company Optimization Engineers GmbH will join European Energy Exchange AG (EEX) as a new market maker, the exchange said on Monday. The Hattingen-based company will be the first market maker to quote only in 1MW contracts on the spot market in the GASPOOL and NCG market zone.
"This might be a signal for other smaller or medium sized energy companies to become actively involved in the trade for smaller volumes at EEX," Klaus Schäfer, Optimization Engineers' managing director, said.
As a market maker, Optimization Engineers will submit bids and offers for spot market products at the same time during the trading day, which is supposed to improve liquidity by narrowing the bid/offer spreads.
According to Schäfer, Optimization Engineers trades volumes of around 400-500GWh per year and distributes gas for about 20,000 private customers and smaller commercial customers. At EEX, Optimization Engineers has been licensed since the beginning of 2010 and also trades on the derivatives market.
"The 1MW contracts facilitate optimisation on the natural gas spot market of the exchange for small and medium-sized traders," explained Oliver Maibaum, managing director of the exchange.
The other EEX market makers for the natural gas spot market are E.ON Energy Trading SE, RWE Supply & Trading GmbH and Vitol S.A. EEX offers spot and derivatives trading in power, gas and carbon dioxide emission allowances, as well as trading in financial coal futures.
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