MEFF launches central clearing for electricity derivatives
Increased liquidity in the Spanish market necessitates netting and reduction of counterparty risk, says managing director
The Spanish electronic exchange, Meff (Mercado Español de Futuros Financieros), began centrally clearing over-the-counter electricity derivatives today (March 21).
The contracts will be settled and managed on Meff's existing central counterparty (CCP) through a new energy segment called Meff Power.
The move comes after several years of swift expansion in Spain's electricity derivatives market, with traded volume in 2010 approximately three times that of 2008.
"As in any other type of market
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