General Process

Scheduling for Market Coupling

Day Ahead:

Emission Rights Process

Advantages of Settlement via ECC

ECC offers substantial expertise in the physical settlement of EUAs and CERs. Our external and internal account structure allows primary- and secondary-market EUAs to be segregated. ECC provides maximum security by guaranteeing the legal origin of the primary auction share of a given member’s EUA holdings.

Registry Transfer

A member can request a transfer of its holdings to any registry account at any time. The Registry Transfer Request has to be entered via the ECC Member Area. It needs to be approved according to the principle of dual control.

ECC checks the request against the members' actual holdings and subsequently initiates the transfer. As soon as the member has entered a Registry Transfer Request, its holdings are blocked. The account balance is updated after s successful transfer.

nEHS

On 15^th March 2021, European Energy Exchange AG (EEX) was awarded the contract for the sale of fuel emission allowances in the national Emissions Trading Scheme (nEHS) by the German Federal Environment Agency. Fuel emissions trading has been in force in Germany since 1^st January 2021. The instrument will set a CO₂ price for the heat and transport sectors at a national level for the first time, as previously this has not been covered by the European Emissions Trading Scheme (EU ETS).

All CO₂-emitting fuels placed on the market, in particular petrol, diesel, heating oil, liquefied petroleum gas, natural gas and coal, are included in the nEHS. The obligated parties under the nEHS are those who place fuels on the market, for example natural gas suppliers or companies in the mineral oil industry.

Registration

To take part in the nEHS sell-off, a registration at the UBA Registry as well as at the nEHS Admission Portal is required. Participation in sell - offs is possible via intermediary or direct access.

Delivery

Sell-offs take place every Tuesday and Thursday from 9.00 am – 3.00 pm (except for T2 – holidays).

For Non-Clearing Members, Clearing Members and Direct Clearing Participants delivery of the certificates within the UBA Registry takes place one day after the respective sell-off on Wednesdays and Fridays between 3 pm and 4 pm.

For DCP-nEHS customers (new special form of EEX/ECC membership for nEHS access only) delivery of certificates takes place on the day after the sell-off on which the money was received (max. after six business days):

• Sell-Off on T (Tuesday or Thursday)
• if payment is received by T+2*, 11 a.m.**: delivery on T+3*
• otherwise one-time extension of the payment deadline until T+5*, 11 a.m.** and delivery on T+6*
• if payment has still not been received by then, the purchase contract will be cancelled***
   

Notes:

*In case the above dates fall on a T2 holiday, the deadlines will be postponed accordingly to the following ECC business day.

** The exact times are currently still being coordinated with the competent authority. Changes are therefore still possible.

***The above information may differ for the last sell-off date in December.

Please note, that changes regarding the day of delivery for DCP-nEHS customers are still possible.

French Capacity Guarantees

ECC offers substantial expertise in the physical settlement of French Capacity Guarantees and has been a reliable partner in this market since 2016. The settlement system is connected to the French Registry for Capacity Guarantees in order to ensure an efficient and fast delivery to the customer accounts.

Registry Transfer

For the physical delivery of capacity guarantees to your customer account in the RTE Registry no Registry Transfer Request (RTR) in ECCs Member Area has to be created. All capacity guarantees sold are transferred by ECC after the auction to the respective buyer account with a delay of 26 hours. However all guarantees unsold are transferred back to the seller account on the day after the auction immediately

European Union Allowances (EUA) as margin credits

• Subject to approval and configuration by the respective Clearing Member, EUAs can be used as margin credits to offset margin requirements for Initial Margin Spot Market (IMSM) and/or Initial Margin Derivatives (SPAN). For Initial Margin Derivatives (SPAN) a margin credit is only calculated for the equivalent credit value of a net short position in EUA Futures. ECC will value the provided EUA’s as margin credits by using the current market value and applying an appropriate haircut to establish the eligible margin credit value.
• In order to use general allowances as collateral
  a) a direct transfer from your union registry account to EEC’s union registry collateral account or b) a transfer from your internal custody account is necessary as shown below.
  Both approaches and further conditions are described more in detail within the EUA as collateral – Guideline.
• In case of margin related questions on that topic, please find more information at  Collateral Emissions (ECC.de)

Reporting

Delivery Reports provide an overview of all physically settled trades to the members. More detailed reports can be accessed via the ECC Member Area.

Each report contains separate data for

• buy and sell transactions
• traded products
• different market areas
   

For the purpos e of physical delivery, positions are always netted out.

Procedure

Power and Natural Gas

• Report for the previous delivery day
• Dispatch between 7.30 and 8.00 a.m. CET and at around 10.00 a.m. CET on weekends
   

GO Futures Process

ECC provides services for the settlement of transactions in the GO market. Therefore, ECC takes advantage of the account structure of the French GO Registry operated by EEX AG. Details on the settlement of GO Futures are provided with GO Futures Delivery Process.